The Federal Reserve announced on Wednesday its much-anticipated decision to keep interest rates unchanged.
With the objectives of sustaining maximum employment and achieving a 2 percent inflation rate long-term, the Fed decided to maintain the federal funds rate target range at 5.25 to 5.50 percent.
Acknowledging some progress towards its inflation target, the Fed stated that a "greater confidence" in a sustainable move towards 2 percent inflation is required before considering a rate cut.
The central bank's accompanying statement remained largely consistent with the previous month, though subtle shifts might indicate potential future rate reductions.
Importantly, the Fed noted its attentiveness to risks involving "both sides of its dual mandate," a slight change from the earlier focus on being "highly attentive to inflation risks."
The Fed affirmed its commitment to monitor the implications of new economic data and reiterated its readiness to adjust monetary policy if emerging risks threaten the attainment of its goals.
The next monetary policy meeting is scheduled for September 17-18, during which investors broadly expect the Fed to commence lowering interest rates.
According to the CME Group's FedWatch Tool, there is currently a 93.5 percent probability that the Fed will reduce rates by a quarter point in September.
