US Interest Rates – 2nd Quarter June 2021

The US FED kept interest rates unchanged over the quarter while continuing its asset purchase program in its efforts to provide more liquidity to the market. Over the quarter investors reacted negatively as US inflation increased to 5%. Notwithstanding this reaction, the FED maintained that US inflation is transitory, and that short-term elevated levels are expected given the low base and release of pent-up demand as the global economy reopens.