Federal Reserve Chair Jerome Powell held a press conference on Wednesday, January 25, 2023, to announce the central bank’s decision to leave interest rates unchanged. This decision was made after the Federal Open Market Committee (FOMC) met to discuss the current economic conditions and the outlook for the future.
In his remarks, Powell said that the FOMC decided to keep interest rates unchanged because it believes that the current level of rates is appropriate to support the economic recovery and to keep inflation under control. He also said that the FOMC will continue to monitor the economic data and will adjust interest rates as needed in the future.
Powell’s remarks were followed by a question-and-answer session with reporters. Powell was asked about a variety of topics, including the possibility of a recession, the impact of the COVID-19 pandemic, and the Fed’s plans for quantitative tightening. Powell said that the Fed is closely monitoring the economy and will take whatever steps are necessary to support the recovery and keep inflation under control. He also said that the Fed is committed to reducing its balance sheet in a gradual and orderly manner.
The Fed’s decision to leave interest rates unchanged was widely expected by economists. The FOMC has been raising interest rates since March 2022 in an effort to combat inflation. However, inflation has started to come down in recent months, and the FOMC is now taking a more cautious approach to raising rates.
The Fed’s decision is likely to be welcomed by businesses and consumers. Higher interest rates can make it more expensive to borrow money, which can slow economic growth. The Fed’s decision to leave rates unchanged will help to keep borrowing costs low and support the economic recovery.
