Fed votes to hold rates, despite pressure

The Federal Open Market Committee voted to hold interest rates steady, according to Federal Reserve Chair Jerome Powell. Noting that while only one interest rate cut is projected for 2024, this could change based on economic data, with a potential rate cut as soon as September.

Powell emphasized the importance of gaining confidence in sustained inflation reduction before making any cuts. Despite slight progress, with the consumer price index showing a year-over-year increase of 3.3% in May, Powell reiterated that current data isn’t enough to justify loosening monetary policy.

Read the FOMC’s statement here.