US Fed on Inflation: 'Somewhat Elevated' But Nearing Target

IconCryptoNewsTerminal Staff31 Jul, 2024

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US Fed on Inflation: 'Somewhat Elevated' But Nearing Target

The US Federal Reserve indicated on Wednesday that while inflation is decreasing, it remains somewhat high. The Federal Open Market Committee (FOMC) stated in a statement that "inflation has decreased somewhat over the past year, but it remains at an elevated level." The target range for the federal funds rate will therefore be maintained. The announcement emphasized that the Fed is dedicated to achieving a 2% inflation rate. The statement said, "We are prepared to adjust our policy stance if the risks to our goals become more pronounced." The Fed acknowledged the ongoing economic uncertainty in its statement. "While inflation is moving towards our target, the economic outlook remains uncertain, and we will continue to monitor the data for further evidence of progress," the statement reads. The Fed's announcement is anticipated to have a significant impact on the markets and the economy as a whole. The Fed has already raised interest rates several times this year to combat inflation, and additional rate hikes are expected in the future.

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