Federal Reserve Leaves Rates Unchanged, Acknowledges Further Progress On Inflation
(RTTNews) - The Federal Reserve on Wednesday announced its widely expected monetary policy decision to leave interest rates unchanged.
Citing its goals of maximum employment and inflation at the rate of 2 percent over the longer run, the Fed said it decided to maintain the target range for the federal funds rate at 5.25 to 5.50 percent.
The Fed acknowledged "some further progress" toward its inflation objective but reiterated officials need "greater confidence" inflation is moving sustainably toward 2 percent before cutting rates.
The central bank's accompanying statement was largely unchanged from last month, although some minor changes may hint at future rate cuts.
Notably, the Fed said it is attentive to the risks to "both sides of its dual mandate" after previously saying it was "highly attentive to inflation risks."
The Fed said it would continue to monitor the implications of incoming information for the economic outlook and reiterated it would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of its goals.
The central bank's next monetary policy meeting is scheduled for September 17-18, when investors widely expected the Fed to begin lowering interest rates.
According to CME Group's FedWatch Tool, there is currently a 93.5 percent chance the Fed will lower rates by a quarter point in September.
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