U.S. Fed leaves interest rates unchanged again

S&P 500 is in the red at writing after the Federal Reserve left its benchmark overnight borrowing rate unchanged again.

Note that the U.S. central bank has kept interest rates in the range of 5.25% and 5.50% – the highest level in more than two decades since July of 2023.

The FOMC statement attributed the decision to a “lack of further progress” in bringing inflation back to the 2.0% target on Wednesday. Rates cuts remain unlikely until members of the federal open market committee have “greater confidence that inflation is moving sustainably toward 2 percent”, the post-meeting statement added.

The interest rate decision arrives only days after the U.S. Bureau of Economic Analysis said the core personal consumption expenditures price index was up more than expected in March (read more).

The benchmark index is currently up about 7.0% versus the start of 2024.

This is a developing story. Check back in a few minutes for more updates!

The post U.S. Fed leaves interest rates unchanged again appeared first on Invezz