Federal Reserve Holds Interest Rates Steady as Inflation Cools

Washington. The Federal Reserve held its benchmark interest rate steady on Wednesday, keeping borrowing costs unchanged for another meeting as officials weigh signs that inflation is cooling against a jobs market that has stayed resilient.

In its statement, the central bank said inflation has eased from its peak but remains above its 2 percent target, and that it would wait for more data before deciding on any cut. Markets had widely expected the decision, with traders now pricing in the first cut early next year.

Fed officials also signalled that the path ahead depends on incoming data on prices, wages and hiring. Economists say a December decision will hinge on the next two inflation reports and the monthly jobs numbers.