The U.S. Central Bank left interest rates unchanged on Wednesday as inflation worries lingered.
U.S. Federal Reserve Chair Jerome Powell said higher energy prices because of the war will drive more inflation, and that there will probably be one rate cut this year.
Wholesale prices increased more than three percent from a year ago, and it was driven partly by a sharp increase in food prices from January to February.
John Cavitek of the National Federation of Independent Business told KNX News’ Jon Baird that small business owners were hoping that interest rates would be cut.
“What we're hearing is uncertainty continues to reign on Main Street, and you know, if we're seeing these higher interest rates continuing to hold steady, that just means higher financing costs for small businesses, and frankly, some small businesses are likely sitting on the sidelines,” he said. “Like I said, they're not investing in their business, they're not investing in jobs and growth, and they won't do so until these rate cuts happen.”
The Fed is waiting to see whether inflationary pressures ultimately ease. Last year, the rate was cut three times.
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