US Federal Reserve keeps interest rates unchanged at 5.25% to 5.5%; Hints at rate cut in September

The US Federal Reserve has left interest rates unchanged at 5.25 per cent to 5.5 per cent, as inflation continues to cool, hinting that a rate cut might come as soon as September.

The Federal Open Market Committee (FOMC), the Fed’s policy-setting body, ended its latest two-day policy meeting with a decision to hold its benchmark interest rate steady that was set a year ago.

The committee in a statement last night said that it does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 per cent.

It said that the committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities.