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Fed holds interest rates steady, but hints at cut ahead
The Federal Reserve kept interest rates at a two-decade high on Wednesday, while leaving the door open for rate cuts as soon as its next meeting in September. Why it matters: Inflation has receded alongside signs that high borrowing costs are taking a toll on the labor market—raising expectations that the Fed will lower rates soon. • In a unanimous decision, the Fed kept its policy rate in a range of 5.25% and 5.5%, where rates have remained since last July. What they're saying: "The broad sense of the committee is that the economy is moving closer to the point at which it will be appropriate to reduce our ... (full story)