The U.S. Federal Reserve on Wednesday held its benchmark lending rate steady for an eighth consecutive time and noted "some further progress" towards its inflation target of 2 percent amid expectations that a rate cut could come in the coming months. After the two-day Federal Open Market Committee (FOMC) meeting, the central bank announced the decision to maintain the rate in the 5.25 to 5.50 percent range, a 23-year high. "Inflation has eased over the past year but remains somewhat elevated," the Fed said in a press release. "In recent months, there has been some further progress toward the committee's 2 percent inflation objective." At last month's rate-setting meeting, the Fed pointed out "modest further progress" towards its inflation target, while its median economic projections suggested one rate cut later this year. In line with progress in the fight against inflation, there has been widespread expectation that the Fed might lower its key rate as early as September. But, the Fed reiterated in the release that the committee does not expect it will be appropriate to lower rates until it has gained "greater confidence" that inflation is on a sustainable track toward its target. The U.S. key rate has remained unchanged since a quarter percentage point increase to the current level in July last year. Before the freeze, the Fed carried out an aggressive rate-hiking campaign launched in March 2022 to bring down inflation. Source: Yonhap News Agency
(LEAD) Fed freezes key interest rate for 8th straight time amid rate cut prospects
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