The Federal Reserve announced on Wednesday that it would maintain interest rates at 5.25% to 5.5%.
The central bank stated that it will not consider reducing the target range until it has more confidence that inflation is steadily moving towards 2 percent.
Despite this decision, the Fed anticipates a single interest rate cut later this year, down from the previously projected three cuts.
Inflation rates stood at 3.4% for the 12-month period ending in April and 3.5% for the year ending in March.
Although inflation has decreased over the past year, it remains elevated and not yet at a level that warrants a rate cut.
The Federal Reserve emphasized its vigilance towards inflation risks due to uncertainties in the economic outlook.
Earlier on Wednesday, the U.S. Consumer Price Index reported a 3.3% increase in the price of goods and services for the 12-month period ending in May.
Despite this, shelter prices continued to rise, with a 5.4% increase in May 2024 compared to the previous year.
