The Federal Reserve decided to hold interest rates steady at the current elevated range of 5.25-5.5%, marking a pause in their aggressive tightening campaign over the past year since interest rate lows of near zero in March 2022. Fed Chair Powell signaled that rate cuts are likely coming later in 2023 if inflation keeps moderating, but policymakers want more confirmation before easing substantially. The tone was cautiously optimistic about a "soft landing," though Powell stressed the Fed is not declaring victory yet on taming inflation. Overall, the Fed is data-dependent but sees progress, hinting at rate cuts this year barring any reversal in the downward inflationary trend.
Fed's Powell sees lower rates on the horizon as inflation ebbs, economy bounces ahead | Reuters
Federal Funds Rate History 1990 to 2023 | Forbes Advisor
The Fed Holds Interest Rates Steady and Is Not Quite Ready to Cut Them | NYT
