Inflation may be better than it was a couple of years ago, but it has not cooled off enough to cut rates. As expected The Federal Reserve held interest rates steady for the sixth straight time.
The Fed was hoping for multiple interest rate cuts by the end of the year, but now the chances of any cut at all is shrinking.
The widely expected decision – which left interest rates unchanged at a range of 5.25% to 5.5%, the highest level in 23 years – comes amid signs that progress on inflation is stalling, or even starting to reverse.
In their post-meeting statement, policymakers left the door open to rate cuts but stressed they need "greater confidence" inflation is coming down before easing policy.
"In recent months, there has been a lack of further progress toward the committee’s 2 percent inflation objective," the statement added.