MITCHELL, S.D. (MITCHELLNOW) The Federal Reserve met yesterday (June 12, 2024) and those who follow the Fed were hoping for a cut in interest rates. That didn’t happen.
The Fed said they’d cut interest rates when inflation was nearer the 2% range. Currently, inflation is 3.5% overall and higher for some commodities. Inflation was flat in May, if food and energy are excluded from the calculations which for consumers they are not.
The Federal Reserve indicated they would consider a quarter point cut in interest rates at their meeting in September, provided inflation comes down. The decision not to cut interest rates now leaves the rate at 5.5%, the highest it’s been in nearly a quarter of a century.
The economy grew by 3.!% in 2023. The Fed projects it will grow by 2.1% this year and by 2% in 2025.