URGENT: US Fed holds rates steady as inflation broadly cools

The US Federal Reserve has left interest rates unchanged on Wednesday after a government report showed inflation cooled more than expected in May.
In a widely expected move, the US central bank decided to leave rates unchanged in a range of 5.25 to 5.5 percent, where they have been since July 2023. This is the highest rate in more than two decades. The policymakers had been previously expecting to cut rates several times by the end of 2024, but that outlook has shifted somewhat after inflation proved surprisingly stubborn at the start of the year.

The CPI report – released few hours ago – showed that consumer prices rose 3.3 per cent from a year earlier, slowing from April’s 3.4 per cent rate, according to the Bureau of Labour Statistics’ latest Consumer Price Index report.

On a monthly basis, the prices held flat for the first time since July 2022.