Despite frustration over high prices, Federal Reserve is expected to keep rates unchanged -- for now
The Federal Reserve is expected to keep interest rates unchanged this week despite ongoing concerns about persistent inflation. While policymakers are frustrated with the current economic climate, they are hesitant to disrupt financial markets before gathering more data.
Why it matters
Federal Reserve interest rate decisions directly influence borrowing costs, mortgage rates, and overall economic growth in the United States.
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WASHINGTON (AP) — Federal Reserve policymakers are losing patience with inflation, but they may not be ready to turn their frustration into action -- not this week anyway.
Meeting in Washington Tuesday and Wednesday, the Fed is expected to keep its benchmark interest rate unchanged. Members of the central bank’s rate-setting committee may not be so reluctant to act when they gather again next Sept. 15-16.
Inflation has been stuck above the Fed’s 2% target for more than five years. New Fed Chair Kevin Warsh told Congress earlier this month that he had “no tolerance’’ for elevated inflation. Warsh is presiding over his second policy meeting this week.
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