Fed Leaves Interest Rates Unchanged as ‘Inflation Risks’ Persist

Fed Chair Powell says his confidence in inflation moving back down is lower than before.

Federal Reserve Chair Jerome Powell holds a press conference at end of the Federal Open Market Committee meeting in Washington on May 1, 2024. Saul Loeb/AFP via Getty Images

The Federal Reserve left interest rates unchanged at their highest levels in 23 years as monetary policymakers have observed “a lack of further progress” toward the central bank’s 2 percent inflation target.

Fed officials noted that the risks to accomplishing its dual mandate of maximum employment and price stability have shifted to a better balance over the past year. Still, the “economic outlook is uncertain,” and the policymaking Federal Open Market Committee (FOMC) is “highly attentive to inflation risks.”