The Federal Reserve left interest rates unchanged on Wednesday and reiterated plans to hold rates steady, noting there has been a lack of further progress on inflation returning to its 2% target.
But Fed Chair Jay Powell soothed markets by making it clear in a press conference Wednesday afternoon that "it is unlikely the next policy move will be a hike."
The central bank voted to keep its benchmark interest rate in a range of 5.25%-5.50%, a 23-year high, at the conclusion of its two-day policy meeting. The fed funds rate has been in this range since July 2023.
In a policy statement, Fed officials said, "In recent months, there has been a lack of further progress towards the committee’s 2% inflation objective." Officials reiterated more clarity in the outlook for inflation returning to target will be needed before cutting rates.
"The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent," the statement read.
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But Fed Chair Jay Powell soothed markets by making it clear in a press conference Wednesday afternoon that "it is unlikely the next policy move will be a hike."
The central bank voted to keep its benchmark interest rate in a range of 5.25%-5.50%, a 23-year high, at the conclusion of its two-day policy meeting. The fed funds rate has been in this range since July 2023.
In a policy statement, Fed officials said, "In recent months, there has been a lack of further progress towards the committee’s 2% inflation objective." Officials reiterated more clarity in the outlook for inflation returning to target will be needed before cutting rates.
"The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent," the statement read.
#youtube #news #fed
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Get the latest news and data at finance.yahoo.com
- Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
- Follow Yahoo Finance on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
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