The American Fed this week kept interest rates stable and, as expected, did not raise them further although they indicated that there would be additional increases by the end of the year, suggesting that monetary policy will remain significantly stricter than previously anticipated until 2024.
It is expected that by the end of this year, the reference interest rates of the American central bank will peak in the range of 5.50 to 5.75 percentage points, or a quarter of a percentage point above the current range.
Although financial markets largely expected the Fed to keep rates unchanged, investors are counting on significant rate cuts over the next year, but all indications from the American central bank show that there will only be a slight reduction in 2024, meaning that reference interest rates will remain above 5.00 percent until the end of 2024, while estimates suggest they will decrease to 3.9 percent by 2025.
According to new projections, U.S. economic growth is expected to be 2.1 percent in 2023, despite earlier expectations that growth would only be 0.4 percent. Additionally, as reported by Reuters, the unemployment rate is expected to remain stable at around 3.8 percent this year.
