Fed holds interest rates steady, postponing rate cuts amid stubborn inflation

 

The Federal Reserve held interest rates steady on Wednesday, opting to keep rates highly elevated as progress toward lower inflation has stalled. The move pushes back rate cuts that the central bank expects to make sometime this year. But the Fed stuck to its previous projection of three rate cuts by the end of 2024. The Fed Funds rate remains between 5.25% and 5.5%, matching its highest level since 2001. The decision arrives roughly a week after fresh inflation data showed inflation ticked up in February, the latest sign that progress toward cooling prices had struck a rough patch. Inflation has fallen significantly from a peak of 9.1% but it remains more than a percentage point higher than the Fed’s target rate of 2%.

“Inflation has eased notably over the past year but remains above the Fed target rate of 2%,” says Chris Wilcox CMO of Premier Business Lending. Commercial equipment rates have seemed to stay steady as of late however if rates do begin to come down then equipment cost is sure to rise.