The Federal Reserve will announce its latest interest rate decision Wednesday. The last time the Fed changed the federal funds rate was in December. Then, we got
a pause in January. This time around, between elevated inflation and a shaky job market, the Federal Reserve is setting the stage for another interest rate hold.
Former Fed governor Randy Kroszner said the war in the Middle East basically cemented the hold — here in the U.S. and around the world.
“Almost every major central bank is having a meeting this week and I think almost all of them are going to stay on hold,” he said. Uncertainty forces economies to stop, observe, and recalibrate, said former Fed adviser Ellen Meade. “If an oil shock or something very similar to it is short lived, probably the best thing a central bank can do is just wait,” she said. |