US Fed leaves rates unchanged for eighth consecutive meeting

July 31, 2024 (MLN): The US Federal Reserve kept interest rates unchanged at 5.25-5.5% for the eighth straight meeting on Wednesday, in line with the market expectations.

Policymakers have kept interest rates at a 23-year high since July last year, maintaining a cautious approach before considering any rate adjustments.

“In recent months, there has been some further progress toward the committee’s 2% inflation objective,” the committee said in a statement released Wednesday.

“The committee judges that the risks to achieving its employment and inflation goals continue to move into better balance," it added.

Annual inflation dropped to 3% in June 2024, its lowest level since June 2023, while the core inflation dropped to over three-year low of 3.3%.

The annual PCE rate also declined to 2.5% from 2.6%. The core PCE rate — the Fed's preferred inflation gauge — also remained low at 2.6%.

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