Federal Reserve Maintains Current Interest Rates, Dismisses Early Rate Cut Expectations

Chairman Jerome Powell emphasizes the need for more data to confirm a sustained downward trend in inflation before considering rate cuts.

The Federal Reserve has decided to maintain the current interest rates, dismissing expectations of a rate cut in the near future.
Chairman Jerome Powell emphasized the need for more data to confirm a sustained downward trend in inflation before considering rate cuts.
Despite the slowing inflation rate, Powell stated that the Fed is prepared to maintain the current target range for the federal funds rate for a longer period, if necessary.
The Federal Open Market Committee unanimously voted to leave the benchmark rate unchanged at a 22-year high, in a target range of 5.25%-5.5%.
Powell's cautious stance has led to a decrease in market expectations for rate cuts, with only 34% of the market expecting a rate cut at the next meeting, down from 73% a month ago.