Powell stays the course with US interest rates on hold

The Fed no longer believes that a recession is necessary to get inflation down, and is willing to tolerate a slow glide path to reach its goal of 2 percent inflation, writes Diane Swonk.

The Federal Open Market Committee (FOMC) - the policy making arm of the United States (US) Federal Reserve - decided to unanimously overnight to hold rates steady at 5.25 percent to 5.50 percent in March. The statement following the meeting was changed very little. The notable change was a line arguing that employment was moderating; it sees underlying growth in the economy as more resilient and stronger than in December. The Federal Reserve upgraded its forecast for growth and inflation, ...

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Authors: Diane Swonk

Published Date: 21 March 2024