Don’t hold your breath for interest rate cuts. The Federal Reserve did not lower interest rates on Wednesday and indicated that it would not do so in the near future because of a “lack of progress” in lowering inflation.
European bankers say that they are hoping the U.S. cuts rates so that their rates can drop within a year of that move. Hong Kong is also keeping in lockstep with the U.S. and kept rates unchanged. But if the U.S. won’t budge, the dominoes can’t fall.
Fed Chair Jerome Powell did say that they most likely will not raise rates again, indicating a peak and a plateau.
“I think it’s unlikely that the next policy rate move will be a hike,” Powell said.
Interest rates typically drop in election years, which usually serves to help the incumbent. President Biden has said that he hopes that the rates drop soon but inflation was up to 2.7% in March from 2.5% in February. The Fed will meet three more times before the November election.
