Fed keeps interest rates at 23-year high for fifth time

Alaina Mayes | 3/20/2024, 1:13 p.m.
The Federal Reserve held its key interest rate steady Wednesday for the fifth consecutive meeting, as the central bank awaits …

The Federal Reserve held its key interest rate steady Wednesday for the fifth consecutive meeting, as the central bank awaits more data to determine when to cut rates.

The Fed has raised rates aggressively over the past two years to a 23-year high in a bid to fight the highest inflation in decades. But while Americans continue to battle high interest rates and inflation, Fed officials are still not ready to cut interest rates and bring down the cost of borrowing.

Central bankers are facing the difficult task of balancing the risk of cutting too soon with the risk of cutting too late — both of which come with consequences.

Wall Street is betting that the first rate cut will come in the summer.

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