U.S. Federal Reserve Keeps Key Interest Rates Unchanged

On Wednesday, the Federal Reserve, the U.S. central bank, kept the key overnight interest rates unchanged in the range of 5.25-5.50 percent. Policymakers indicated that they still expect to reduce interest rates by 75 basis points by the end of 2024. Federal Reserve Chair Jerome Powell predicted a relative stabilization in consumer price growth, even though recent inflation data has come in higher than expected. Powell added at a press conference following the Federal Open Market Committee meeting that despite recent data, the numbers "have not changed the overall situation, which is that inflation is gradually declining (but) is on a somewhat bumpy path."