Live Updates: Fed Holds Rates, Noting 'Lack of Further Progress' on Inflation

The Federal Reserve has decided to maintain interest rates at 5.33%, a peak not seen in over two decades, due to persistent inflation concerns. Despite previous hopes for rate cuts in 2024, stubbornly high inflation rates have led to revised expectations, with potential rate reductions being pushed back.

Fed Chair Jerome H. Powell emphasized the need for greater confidence in inflation reduction before considering lowering rates. Although inflation has decreased from its 2022 peak, it remains above the Fed's target, influencing ongoing high-interest rates to ensure inflation is thoroughly addressed. This stance affects everything from stock market trends to mortgage rates, impacting broader economic conditions.