Still, amid inflation that remains elevated despite a fairly strong economy, the Fed has signaled there may be another rate hike later this year.
Wednesday decision means the benchmark short-term interest rate will remain at 5.25% to 5.5%, a 22-year high. This is only the second time since March 2022 that the Fed meetings have concluded without another rate hike. "Economic data reports continue to show a slowing economy. ... If there is one thing that could potentially persuade the Fed to raise rates later this year, it’s oil," CNN quoted JJ Kinahan, chief executive at IG Group North America, as saying on Wednesday.
Oanda senior market analyst Craig Erlam likewise noted that “At a time when central banks are starting to see the light at the end of the inflation tunnel, $100+ oil will be incredibly unwelcome and unhelpful.
In the UK, as well, analysts are concerned that soaring oil prices could reverse consumer price inflation that has been declining since February this year, with the Bank of English set to decide on interest rates on
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Source: LBC - 🏆 17. / 74 Read more »