The US Federal Reserve is dampening expectations of rapid interest rate cuts. Since March 2022, the Fed has raised its key interest rate by more than five percentage points at a record-breaking pace.
The rapid inflation was triggered, among other things, by the rise in energy prices after the Russian attack on Ukraine. If interest rates rise, private individuals and businesses have to spend more on loans - or borrow less money. It is important for the Fed to find the right balance because if interest rates are too high, there is a risk of a recession.