Policymakers at the US Federal Reserve have made progress on inflation and job gains. But they decided on Wednesday to keep interest rates unchanged, for an eighth straight meeting.
Fed officials saw consumer prices rise to heights not seen in decades. They responded by raising interest rates to a 23-year high and have kept them there for the past year. They have had to be careful not to tip the economy into a recession.
Policymakers have managed to move inflation closer to their target, 2 percent. They also want to make sure everyone who wants to work has a job, something they call “maximum employment.” Chair Jerome Powell said they need “greater confidence” about reaching those goals. “If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September,” he said.
Investors have been waiting month after month for the Fed to lower rates. They expect to see that cut after policymakers emerge from the next meeting.