US Fed holds rates with eye on inflation – Times of India

US Fed holds rates with eye on inflation – Times of India

WASHINGTON: The US Federal Reserve held interest rates steady on Wednesday and signalled it is still leaning towards eventual reductions in borrowing costs, but put a red flag on recent disappointing inflation readings and suggested a possible stall in the movement towards more balance in the economy.
The Fed’s latest policy statement kept key elements of its economic assessment and policy guidance intact, noting that “inflation has eased” over the past year, and framing its discussion of interest rates around the conditions under which borrowing costs can be lowered.The US central bank also announced it will scale back the pace at which it is shrinking its balance sheet starting on June 1.

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