Federal Reserve Maintains High Interest Rates Amid Inflation Concerns

Despite significant rate hikes, U.S. inflation rates remain stubbornly high, prompting the Federal Reserve to consider maintaining current rates longer than anticipated.

• Recent Federal Reserve statements indicate reluctance to cut interest rates this year, as officials seek more evidence of inflation control.
• High borrowing costs have not significantly impacted American spending habits, with many consumers shielded by previous low-rate refinances.
• Economic data shows Americans' debt payments as a percentage of income remain low despite rate increases, hinting at delayed economic responses.
• The gap between new and outstanding mortgage rates is at its highest since the 1980s, suggesting a slow adjustment to the housing market.
• Economists forecast a slight decrease in inflation for April, but long-term concerns persist as the Fed aims for a 2% target.

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