Fed holds rates steady and notes progress on inflation

There were also a few other tweaks, as the FOMC voted unanimously to keep its benchmark overnight borrowing rate targeted between 5.25 percent-5.5 percent. That rate, the highest in 23 years, has been in place for the past year, resulting in 11 increases to bring down inflation.

Central bankers made no obvious indications that a reduction is imminent, maintaining language that indicates ongoing concerns about economic conditions, albeit with progress. They also preserved a declaration that more progress is needed before rate reductions can happen.

“The Committee judges that the risks to achieving its employment and inflation goals continue to move into better balance,” the Federal Open Market Committee’s post-meeting statement said, a slight upgrade from the previous language.

The statement continued, “Inflation has eased over the past year but remains somewhat elevated. “In recent months, there has been further progress toward the Committee’s 2 percent inflation objective.”
 

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