Federal Reserve to remain US interest rate

The U.S. Federal Reserve decided not to change its interest rates but hinted they might increase them by the end of the year. Their projections suggest the benchmark overnight interest rate might peak between 5.5% to 5.75% this year, decreasing to 5.1% by 2024's end and 3.9% by 2025. They're hoping to lower inflation from 3.3% in 2023 to 2.5% in 2024 and then to 2.2% in 2025. They aim to reach a 2% inflation rate by 2026.

After these numbers came out, there were clear reactions in the financial world. Bond values went up, stocks went down a bit, and the U.S. dollar made up for earlier losses compared to other big currencies. The Federal Reserve now believes the economy will grow by 2.1% in 2023, which is a lot more than their earlier guess of 0.4%. As for jobs, they think the unemployment rate will be 3.8% this year and might go up to 4.1% by the end of the year.

Bond yields surged, indicating a long-term hawkish approach. The Federal Reserve now believes the economy will grow by 2.1% in 2023, which is a lot more than their earlier guess of 0.4%. As for employment, the unemployment rate is forecasted at 3.8% for this year, potentially jumping up to 4.1% by year-end.