Federal Reserve keeps interest rates unchanged for the seventh consecutive time

WASHINGTON (apro).-The Federal Reserve or Central Bank of the United States, decided to leave the interest rates on interbank loans intact, despite the news that between the months of April and May of this year the inflationary bubble of the macroeconomy fell 0.1%.

After two days of session, the Federal Reserve Open Market Committee considered it prudent not to touch the monetary policy of the United States, hoping that the annualized inflation rate, which was 3.3% in May, will decrease for its next meeting.

The continuity in the monetary policy strategy in the face of the expectation of greater falls in inflation leaves the interest rates on short-term bank loans in the monthly range of 5.25 and 5.5%, with the possibility of downward adjustments for the July.

Jerome Powell, the president of the Federal Reserve, had already announced that this year he intended to make at least 3 cuts to interest rates this year, however the economic reality of the United States keeps monetary policy cautious due to the inflation.

The board of governors of the Federal Reserve will meet again on July 30 and 31, to once again review the macroeconomic boxes of that moment and channel the possibility of adjusting monetary policy downwards.

The decision of the Open Market Committee was not good news for the re-election campaign of President Joe Biden, who despite the contraction in inflation registered last May, maintained that it is better to implement measured adjustments than spontaneous cuts.

With the cost of housing, fuel, automobiles and basic food products going through the roof, Americans attribute the inflationary reality to bad economic decisions made by the Biden government, which benefits Donald Trump electorally.

The variations that are forecast for the interests of interbank credits in July, according to financial specialists; They would range between a cut between half a percentage point as a minimum and 0.75% as a maximum; with the aim of avoiding macroeconomic overheating.

After constant increases in interest rates in 2023 that stopped a disproportionate increase in the inflation bubble that year and contained the negative effects of the covid-19 pandemic on the economy, the Federal Reserve leaves monetary policy intact pending good results. news.

If interest payment levels are reduced, the most palpable effects would affect mortgage payments, bank loans to medium and small businesses, and the value of automobiles, household appliances, and clothing; among other goods and services.