Fed keeps interest rate unchanged

The US economy appears "stronger than previously predicted" according to the Washington Post and as a result, the Fed has not changed the base rate after several increases in previous quarters.The base reserve rate will remain at 5.25-5.5%, the highest in 22 years. Is a recession now looming? Some economists think so. Are Americans feeling great about the economy? No.“Concerns about inflation are still something that I hear when I talk to people,’’ Boston Fed President Susan Collins told The Washington Post last month. “From my perspective, what price stability means is a level of low, stable prices where people aren’t really focused on it. … And people are still quite focused on it.’’

Fed Raised the Rate, Now What?

Howard Schneider and Ann Saphir of Reuters News report on the Fed's raised interest rate. The benchmark rate is now 5.00 - 5.25% and removed language anticipating future hikes.They report that Fed Chairman Powell said that inflation is still the top concern of economic policy makers. Many are concerned by the failure of three banks in the past few months, largely due to devalued older holdings that were loaned at a lower rate.Reuters predict the rate will go down in September, but Powell would not commit to that timespan, believing the crunch will last longer.The last time interest rates were this high was in 2006-2008, right before the big financial crash of 2008.