I interest rates Americans don't touch each other because theinflation it is still too high. It is the result of the board meeting of the Fed, from which no one, in truth, expected an immediate rate cut. In the United States the cost of money therefore remains between 5,25 and 5,50%.
But to worry i financial markets it is not so much a decision taken for granted but the very uncertain prospects outlined by the Fed President Jerome Powell, who made it clear that, at this point, “no further paths in reducing inflation are assured” and that “the path forward remains uncertain”. At the beginning of the year Powell had promised three rate cuts (previously even six) but now everything is becoming more uncertain not only because inflation remains high but also because the American economy continues to run and lowering rates could now be imprudent. The Fed also explained that there will be no rate cuts until there is more confidence that inflation will fall towards 2%.
We will see today how the markets will react, not only in America, but also in Europe and on Piazza Affari.
