US Federal Reserve keeps rates steady

The Federal Reserve has decided to maintain the federal funds rate unchanged, continuing the trend for the fifth consecutive meeting, keeping it within the 5.25-5.50 percent range. Economists anticipated this decision, with no rate changes occurring for over half a year. Jeppe Juul Borre from Arbejdernes Landsbank stated that any deviation would have been a significant surprise, but Fed’s announcement indicates a potential for rate cuts within the current year. Tore Stramer from Dansk Erhverv observes an expectation for three rate decreases this year, potentially beginning before the summer, likely in June. Despite this, Lars Olsen from Danske Bank remarks on the ongoing high inflation in the US which rose slightly in February, questioning the rationale behind potential rate decreases.