The Federal Reserve kept interest rates unchanged in the range of 5.25% to 5.5% Wednesday. However, the Fed said that it might cut rates in September
The Federal Reserve kept interest rates unchanged in the range of 5.25% to 5.5% Wednesday, and reduced its security holdings. It added that there will not be an interest rate cut until it has gained greater confidence that inflation is moving toward its target range of 2%.
However, the Fed gave the market hints that it might cut rates in September.
“We have made no decisions about future meetings and that means the September meeting,” said Fed Chair Jerome Powell during a post-meeting news conference.
He added that the Federal Open Market Committee (FOMC), the Fed’s policy board, has a broad sense that the economy is moving closer to the point where it will be appropriate to move the interest rate.
