Federal Reserve Leaves Interest Rates Unchanged, Signals Not Ready to Cut

The Federal Reserve left interest rates unchanged at the first policy meeting of 2024, signaling that officials might not reduce the benchmark federal funds rate “until there is greater confidence” that inflation is inching toward the central bank’s target rate of 2 percent. Federal Open Market Committee (FOMC) members noted that the U.S. economy has been expanding, adding that the labor market has moderated, but remains strong. “Inflation has eased over the past year but remains elevated,” the Fed said in a statement. Investors paid close attention to the mixed messaging in the rate-setting Committee’s language. Policymakers adjusted their tightening stance while also suggesting that they may not slash interest rates....