US key interest rate remains unchanged – further reduction signaled. Fed expects inflation to fall and forecasts lower economic growth.

US key interest rate remains unchanged – further reduction signaled. Fed expects inflation to fall and forecasts lower economic growth.

According to a report by www.zeit.de, the US key interest rate remains in the range between 5.25 and 5.5 percent, with the Federal Reserve's decision confirming analysts' expectations. The central bank is signaling a possible reduction next year, with the key interest rate being cut in three steps to 4.6 percent by the end of 2024.

The decisions regarding the key interest rate serve to combat the high inflation rate. The Fed raised the key interest rate in several steps due to strong inflation, and the current key interest rate is the highest in the USA in more than 20 years.

However, inflation in the USA is now noticeably falling again and the Fed expects further easing in the coming year. The inflation rate is expected to average 2.4 percent in 2024, which is lower than the previously forecast 2.5 percent. The Fed also expects economic growth for 2024 to be slightly lower than forecast three months ago.

The prospect of falling interest rates has pushed the Dow Jones Industrial to a new record high, indicating a positive market reaction to the potential rate cut.

The interest rate cut may reduce the impact on consumer spending, a mainstay of the U.S. economy, by making it cheaper to borrow to buy homes or cars. However, the impact on the market and the financial industry depends on various factors, including the further development of the inflation rate, economic growth and the reaction of consumers and investors.

The Federal Reserve's decisions will continue to provide important stimulus for financial markets and the broader economy, and it remains to be seen how planned interest rate cuts will impact the U.S. economy in the coming years.