Key Points
- The Federal Reserve kept its key borrowing rate targeted in a range between 4.25%-4.5%, where it has been since December.
- However, the central bank expects inflation to remain elevated and sees lower economic growth ahead.
- Still, the Federal Open Market Committee expects to make two rate reductions later this year.
ABOLISH THE FED!
But....The Fed is in a tough spot, because who wants to buy bonds at the current rates? Nobody!
Federal Reserve Chairman Powell said in his speech that
- U.S. economy is in a solid position, but inflation has been slightly above target.
- US Labor conditions are consistent with maximum employment.
Can inflation reach upto 3% by next month?