By Arlenys Tabare
This Wednesday, April 29, the Federal Reserve (Fed), headed by its president Jerome Powell, together with the group of 12 members of the Federal Open Market Committee (FOMC), in their third meeting of the year announced through a press conference that Interest rates will remain unchanged, remaining in the range of 3.50% to 3.75%.
The decision of the monetary policy regulators is announced in the midst of an uncertain geopolitical context, in what was expected to be a truce between the United States and Iran that would allow open the Strait of Hormuz, through which about 20% of the world’s crude oil transits.
However, tensions between both nations have escalated this week the price of oil above $110 per barrel and the national cost of gasoline at $4.22 per gallon, one of the highest levels in 4 years, according to AAA.
Added to this is a interannual inflation rate of 3.3%, according to the latest report published in March by the Bureau of Labor Statistics (BLS), and a tight labor market with an unemployment rate above 4%.
Previous interest rate hikes, pauses and cuts
With this new decision from the Federal Reserve, this is how the interest rates remain from March 2022 to April 2026:
- March 16, 2022, the first increase was 0.25%.
- May 4, 0.5%, leaving the interest rate at 0.75%.
- June 15: It rose to 0.75%, settling at 1.50%.
- July 27: An increase of 0.75% was announced, reaching the 2.25% range.
- September 21: The interest rate reached 3% after the Fed announced a 0.75% increase.
- November 2: It was raised to 0.75%, leaving interest rates at 3.75%.
- December 14: The Federal Reserve announced a final increase in 2022 of 0.5%, leaving it at 4.25%.
- February 1, 2023: Rates rise again by 0.25%, settling in the 4.75% range.
- March 22: an increase of 0.25%, thus placing it in the range of 4.75% to 5%.
- On May 3 there was an increase of 0.25%, placing interest rates at 5.25%.
- July 26: The interest rate rose 0.25%, reaching 5.50%, its highest in 22 years.
- The four breaks: August, September, November and December 2023.
- January 31: Fifth interest rate pause.
- March 20: Sixth interest rate pause.
- May 1: seventh interest rate pause.
- June 12, eighth interest rate pause.
- July 31, ninth interest rate pause.
- September 18, 0.5% cut.
- November 7, 0.25% cut.
- December 18, interest rate cut of 0.25%.
- January 29, 2025: Keeps interest rates unchanged between 4.25% and 4.50%.
- March 19, 2025: Interest rate pause.
- May 10, 2025: pause on interest rates.
- June 18, 2025 remains unchanged.
- July 30, 2025: Interest rates remain unchanged.
- September 17, 2025: 0.25% interest rate cut.
- October 29, 2025: second 0.25% cut; It remained at 3.75% to 4%.
- December 10, 2025, third 0.25% cut.
- January 28, 2026: Remains unchanged.
- March 18, 2026: Remains unchanged.
- April 29, 2026: Remains unchanged.
Keep reading:
- OECD expects US inflation to be 4.2% this year
- Economists raise the odds of a sharp recession in the next 12 months due to the war in Iran
- Gasoline prices in the US reach $4 per gallon: the highest cost since 2022
- DOJ closes investigation against the Fed and its leader Jerome Powell
