The Federal Reserve left its key interest rate unchanged again on Wednesday, March 20, and stuck to its forecast of three rate cuts this year despite signs that inflation may stay elevated longer.
The decision leaves the Fed’s benchmark short-term rate at a 23-year high of 5.25% to 5.5% for a fifth straight meeting.
After hiking the rate from near zero since March 2022 to wrestle down high inflation, the central bank has stood pat since July as consumer price increases moderated substantially.
Wednesday’s move means Americans will keep paying higher borrowing costs as the Fed battles to slow sharp price increases. Read more.