FILE - Federal Reserve Board chair Jerome Powell speaks during a news conference at the Federal Reserve in Washington, March 20, 2024. The Federal Reserve is showing some signs of growing concerns about the rate inflation cooling off and uncertainty about when will be the right time to start cutting interest rates that are taking a toll on consumers that have had to rely on credit cards to make purchases due to higher prices.
“Participants observed that while inflation had eased over the past year, in recent months there had been a lack of further progress toward the Committee’s 2 percent objective,” aThe Federal Open Markets Committee voted unanimously at the conclusion of their meeting to leave its benchmark interest rate at a range of 5.25% to 5.5%, a 23-year high that has been steady since last July.
While progress in headline inflation measured in the CPI has been stalled, there are other indications the economy is cooling in a way that may lead to inflation continuing to drop. Last month’s jobs report showed hiring slowed and economists are projecting gross domestic product to slow along with slower gains in wages.