US Fed leaves rates unchanged amid inflation progress, avoids signaling imminent rate cut

WASHINGTON -- The US Federal Reserve on Wednesday left interest rates unchanged at a 22-year high of 5.25 percent to 5.5 percent as inflation continued to cool, while avoiding the signal of an imminent rate cut going forward.

The latest marks the fourth straight meeting for the central bank to hold policy rate steady.

"The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance," the Federal Open Market Committee (FOMC), the Fed's policy-setting body, said in a statement after concluding a two-day policy meeting, the first in 2024.

"The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the committee said.

It also noted that in considering "any adjustments" to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.

"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," it said.