Connect with us

Hi, what are you looking for?


US Fed vice chair says interest rates should remain on pause

The US Federal Reserve has hiked interest rates — and held them — at a 23-year high as it looks to bring inflation down.

Wall Street: — © Digital Journal
Wall Street: — © Digital Journal

The US central bank should keep interest rates at their current “restrictive” levels until it sees real progress in the fight to lower inflation, a senior Fed official said Monday.

The US Federal Reserve has hiked interest rates — and held them — at a 23-year high as it looks to bring inflation down to its long-term target of two percent.

After making significant progress last year, Fed policymakers have hit a speed bump since the start of the year, with inflation coming in too hot in the first three months of 2024.

“In light of the attenuation in progress in terms of getting inflation down to our target, it is appropriate that we maintain the policy rates in restrictive territory, which it is right now,” Fed vice chair Philip Jefferson said at an event in Cleveland, Ohio.

“We continue to look for additional evidence that inflation is going to return to our two percent target,” he said, adding that “until we have that, I think it is appropriate to keep the policy rate in restrictive territory.”

The Fed said earlier this month that it does not expect to start lowering rates until it has “greater confidence” that inflation is moving sustainably towards its two percent target.

Jefferson’s comments on Monday echo those of Fed chair Jerome Powell, who told reporters in early May that “it is likely that gaining such greater confidence will take longer than previously expected.”

Futures traders currently assign a probability of close to 65 percent that the Fed will start lowering interest rates by mid-September, according to data from CME Group. 

Written By

With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

You may also like:


Nvidia says nations interested in building their own 'sovereign AI' are among the customers driving demand for its chips - Copyright GETTY IMAGES NORTH...


The Republican-backed Financial Innovation and Technology for the 21st Century Act -- known as FIT21.


A screen grab of a video released by the Colombian Presidency of the wrecked Spanish galleon San Jose - Copyright Colombian Presidency/AFP -Colombia on...

Social Media

Digital vigilantism refers to the individuals or groups use the Internet, especially social media, to enforce justice as they see it.