Sunday, June 1, 2025

Latest

Federal Reserve Maintains Interest Rates For Second Meeting In A Row

The Federal Reserve has opted to keep interest rates steady at a 22-year high of 5.25 to 5.5 percent, marking the second consecutive meeting without an increase. This decision comes despite evident strength in the U.S. economy, as officials deliberate whether prior rate hikes have adequately curbed demand to control inflation.

The Fed commented that recent indicators point to a robust expansion in economic activity during Q3. Job gains, although slightly moderated, continue to be strong, and the unemployment rate is persistently low. However, inflation remains a concern, being elevated above the Fed’s long-term objective of 2 percent.

The Federal Open Market Committee highlighted the resilience of the U.S. banking system but acknowledged that tighter credit conditions might impact economic activity and inflation. The Committee expressed commitment to closely monitor inflation risks and emphasized its readiness to adjust the policy stance if necessary.

Post the announcement, the two-year Treasury yield, indicative of interest rate expectations, fell to 4.98 percent, its lowest in almost three weeks. Simultaneously, the 10-year yield, reflecting growth and inflation expectations, showed a brief dip before recovering.

Despite 11 rate increases since March 2022, U.S. economic demand continues to outperform expectations, with high consumer spending and low unemployment. The inflation rate meanwhile has retreated from its June 2022 peak of 9.1 percent to 3.7 percent in September.


Information for this story was found via the Federal Reserve. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How a Single Deal Turned 2 ‘Dead’ Mines into a $2B Project | Canadian Copper PEA – Simon Quick

Silver47 x Summa Silver: Creating An Explorer With A Billion Ounce Goal

Alamos Gold Q1 Earnings: The Inside Scoop

Recommended

Silver47 x Summa Silver: Creating An Explorer With A Billion Ounce Goal

Canadian Copper: The $172M Combined Strategy PEA

Related News

Rapid Pace of Rent Increases in the U.S. Seems to Argue for Aggressive Action by the Fed

The stock market is facing two main obstacles: 1) the global economic impact of the...

Tuesday, February 22, 2022, 03:41:00 PM

Real Estate Crash En Route? Experts Call for 17.5% Peak to Trough Drop in Canadian Home Prices

Canadian home prices are slated for a major landslide drop of at least 17.5% from...

Friday, November 25, 2022, 07:31:00 AM

US Federal Reserve To Lapse Nearly all Covid-19 Emergency Credit Facilities

Now that it has nearly been a year since the Covid-19 pandemic decimated US financial...

Wednesday, March 10, 2021, 10:33:00 AM

Is The Rate Hike Pause The Calm Before The Recession Storm?

As was forecasted by economists, Bank of Canada Governor Tiff Macklem decided to keep the...

Thursday, September 7, 2023, 12:39:00 PM

Bank Of Canada Cuts Interest Rates For Seventh Consecutive Time To 2.75%

The Bank of Canada announced today a 25 basis point reduction in its target for...

Wednesday, March 12, 2025, 10:07:27 AM