Federal Reserve Holds Interest Rates Steady as Inflation Progress Stalls

The Federal Reserve held interest rates steady on Wednesday, opting to keep rates highly elevated as progress toward lower inflation has stalled. The move pushes back rate cuts that the central bank expects to make some time this year. But the Fed stuck to its previous projection of three rate cuts by the end of 2024.The decision arrives roughly a week after fresh inflation datainflation ticked up in February, the latest sign that progress toward cooling prices had struck a rough patch.

Inflation has fallen significantly from a peak of 9.1% but it remains more than a percentage point higher than the Fed's target rate of 2%. In a statement on Wednesday, the Federal Open Market Committee, the central bank's top policymaking body, said progress has been made toward lowering inflation. But, the group added, more headway will be necessary before the Fed cuts 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 FOMC said. The move affords the Fed additional time to observe price movements before going forward with interest rate cuts. Addressing House members at the Capitol earlier this month, Fed Chair Jerome Powell reaffirmed the Fed's plans to cut rates this year but cautioned that the central bank first wants to see inflation fall lowe

Federal Reserve Interest Rates Inflation Rate Cuts Progress Target Rate

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