The Federal Reserve is worried about inflation staying high and is unlikely to lower interest rates soon. Past mistakes, like cutting rates prematurely in the 1960s, make them cautious. Recent data shows inflation is not cooling down as much as expected, so the Fed is keeping rates higher for longer to prevent inflation from getting worse.
The Federal Reserve is carefully considering interest rate cuts while balancing concerns about inflation. Having previously made mistakes by prematurely loosening policy, the central bank aims to avoid repeating those errors. While the economy is showing signs of growth, officials recognize the risks of allowing inflation to persist for too long. Therefore, they may take a cautious approach to rate adjustments, keeping them higher for a longer period to ensure price stability.
