US Fed keeps key lending rate unchanged

The US Federal Reserve Building is seen in Washington, DC, May 3, 2023. The US Federal Reserve is widely expected to raise its benchmark lending rate for a 10th — and possibly final — time, as it aims to bring down inflation while preventing fresh banking concerns from spreading. (Photo by SAUL LOEB / AFP)

Washington, United States — The US Federal Reserve left its key lending rate unchanged again on Wednesday and said it had made “some further progress” in its inflation fight.

Policymakers voted unanimously to maintain the US central bank’s benchmark interest rate between 5.25 percent and 5.50 percent, the Fed announced in a statement following two days of deliberations.

After a small uptick in inflation earlier this year, recent data suggest that the Fed’s mission of bringing inflation back down to its long-term target of two percent is now firmly back on track.

READ: US Fed expected to pause again and hint at September rate cut

Its favored measure of inflation eased to an annual rate of 2.5 percent last month, while economic growth has remained resilient, and the labor market has come into better balance.

“In recent months, there has been some further progress toward the Committee’s 2 percent inflation objective,” the Fed said.

This marks a slight change in tone from its decision in June, when it noted only that “modest further progress” had been made.

“The Committee judges that the risks to achieving its employment and inflation goals continue to move into better balance,” the Fed said, adding that it was “attentive to the risks to both sides of its dual mandate.”

Fed Chair Jerome Powell will address reporters later Wednesday, and analysts expect him to hint at the possibility of an interest rate cut at the next Fed meeting in September.