Fed maintains positive outlook and lowers interest rate expectations

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FOMC interest rate decision

As expected, the Federal Reserve's interest rate decision-making body (FOMC) decided to keep interest rate levels unchanged at yesterday’s meeting. The target interest rate thus remains within the range of 2.25-2.5%. The assessment of the economy became more cautious, albeit limited to the first quarter. The strength of the labor market was confirmed. At the same time, however, there were signs of a slowdown in the economy in the first quarter. However, sustained solid economic growth, a strong labor market and an inflation rate close to the central bank's target continue to be seen as the most likely future development. Political developments and subdued inflation let the central bank be patient in setting the further interest rate path. With this, the FOMC confirmed its wait-and-see stance.