Fed May Keep Interest Rates High as Inflation Struggles Continue, Rate Cut Hopes Disappointed.

The Federal Reserve will convene for a two-day meeting starting tomorrow, but those anticipating a rate cut may be disappointed. Officials have been hesitant to lower the central bank’s key interest rate without clear proof that inflation has been eradicated. In fact, price increases have reemerged over the past three months, complicating the decision-making process.

The Federal Open Market Committee is expected to maintain the fed funds rate when the meeting concludes on Wednesday. The Committee is likely to emphasize their commitment to combating inflation and may continue to keep interest rates high until inflation is better controlled.

Throughout the year, the Federal Reserve has struggled in its battle against inflation, leading to diminished hopes for rate cuts in the near future. Since July, the Fed has maintained its benchmark interest rate within a range of 5.25% to 5.5%. As the meeting approaches, observers are keen to see how the Fed plans to address the ongoing challenges posed by inflation.