URGENT: US Fed leaves rates unchanged

The US Federal Reserve on Wednesday maintained its current interest rate range of 5.25 per cent to 5.50 per cent, in its fifth decision of 2024, following a two-day FOMC meeting.

“There has been some further progress towards the Committee’s 2 per cent objective,” the central bank’s Federal Open Market Committee said in a statement at the end of a two-day policy meeting in which it set the stage for a rate cut at its Sept. 17-18 meeting, just seven weeks before the US elections on November 5.

The decision comes amid mixed economic indicators. While inflation has shown signs of improvement, falling 0.1 per cent in June from May and registering a 3 per cent annual increase (slightly below market expectations of 3.1 per cent), the labour market has displayed signs of cooling. This moderation has fueled speculation about potential rate cuts later this year.

Attribution: US Federal Reserve press release