On May 3, the Federal Reserve issued another key interest rate boost of 0.25%, pointing to sustained strong inflation.
Interest rates are now at their highest level in 16 years, at 5.25%. They last reached this level during the Great Recession.
Significantly, the Fed omitted the phrase “anticipates” further rate hikes from its policy statement announcing the increase, instead stating that it will consider “the extent to which additional policy firming may be appropriate.”
“We on the committee believe that inflation will come down gradually, over time,” Fed Chair Jerome Powell told reporters. “…if that forecast is broadly correct, cutting rates this year would be inappropriate.”
