After rapidly hiking interest rates in 2022, the Fed has in recent months held them at a high level in hopes of stamping out stubborn inflation by lowering demand. — Reuters picWASHINGTON, May 30 — Outlooks on the US economy have become gloomier with reports of rising uncertainty and worries over risks, even though growth broadly continued recently, the Federal Reserve said on Wednesday.
After rapidly hiking interest rates in 2022, the Fed has in recent months held them at a high level in hopes of stamping out stubborn inflation by lowering demand.But at policymakers’ most recent meeting in May, they cited a lack of further progress towards a two per cent inflation target in keeping the benchmark lending rate unchanged.
“Interest rate sensitive parts of the economy are also holding up well, despite high rates curbing lending demand,” Pearce said in a note.