Fed chair holds rates steady

WASHINGTON (NEXSTAR) – It won’t get cheaper to make big purchases this summer.

The Federal Reserve announced it will keep interest rates at current levels of 5.3% which is a 23-year high.

President Biden says prices are still too high but praised the new economic report as progress, saying inflation is trending down.

“Inflation has eased substantially from a peak of 7% to 2.7%,” said Federal Reserve Chair Jerome Powell.

Despite the decrease, Federal Reserve Chairman Jerome Powell says inflation remains too high.

“It’s probably going to take longer to get the confidence that we need to loosen policy,” said Powell.

May’s decrease is the second month in a row with lower inflation but Greg McBride, a financial analyst with Bankrate, says many are still not feeling that relief.

“No one’s walking out of the supermarket feeling like they got a bargain, because prices are a lot higher. Even though prices aren’t going up as fast as they were, they’re a lot higher than they were a few years,” said McBride.

Florida Republican Senator Rick Scott and Senate Republican Leader Mitch McConnell blame President Biden for the high prices.

“It’s not fooling anyone who actually has to balance a family budget,” said McConnell.

Pennsylvania Congresswoman Mary Gay Scanlon says House Republicans aren’t doing anything to help strengthen the economy.

“It’s clear the Republican majority has not done anything to address those issues,” said Scanlon.

Economists are forecasting that interest rates could come down by the end of the summer.

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