The good news is that the inflation rate is on the decline. The bad news is that it still exceeds the Federal Reserve’s target rate of 2%. As a result, the Federal Reserve announced last week that it will maintain the current interest rate of 5.25% to 5.5%. 

In a statement, the central bank noted:

“Economic activity has continued to expand at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. In recent months, there has been modest further progress toward the Committee’s 2% inflation objective.” 

The Fed now predicts just one rate cut for 2024, a disappointing decision for investors expecting multiple rate cuts for the year.

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