Fed Flags Lack of Inflation Progress But Signals Hikes Unlikely
- Powell says Fed seeking more confidence on prices before cuts
- Policymakers agree to slow reduction in bond portfolio
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The Federal Reserve signaled fresh concerns about inflation while indicating it was likely to keep borrowing costs elevated for longer rather than raising them again.
Officials unanimously decided Wednesday to leave the target range for the benchmark federal funds rate at 5.25% to 5.5% — where it’s been since July — following a slew of data that pointed to lingering price pressures in the US economy. They also reaffirmed the need for more evidence that price gains are cooling before cutting interest rates from a two-decade high.