WASHINGTON—The Federal Reserve left its key interest rate unchanged on June 19 but signaled that it could cut interest rates by as much as half a percentage point over the remainder of this year in response to economic uncertainty and a drop in expected inflation.
The Fed, which held rates steady after the end of its latest two-day policy meeting, said it “will act as appropriate to sustain” a nearly 10-year economic expansion and dropped a promise to be “patient” in adjusting rates. Nearly half its policymakers now show a willingness to lower borrowing costs over the next six months.
