By TILLY ARMSTRONG ASSISTANT CONSUMER EDITOR FOR DAILYMAIL.COM
PUBLISHED: 12:49 EDT, 31 July 2024 | UPDATED: 17:22 EDT, 31 July 2024
The Federal Reserve has held interest rates steady for the sixth consecutive time, but hinted it is closer to cuts.
Fed Chair Jerome Powell said an interest rate cut could be possible next month, and the central bank made notable changes to its policy statement, indicating that inflation is getting closer to its 2 percent target.
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The central bank has kept interest rates between 5.25 percent and 5.5 percent for the past year. This range sets a guidepost for rates for credit card, mortgages and other consumer debt products affecting household budgets.
Markets had been looking for signs that the Fed will begin cutting rates next month for the first time in more than four years.
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The Federal Reserve has held interest rates steady for the sixth consecutive time, but hinted it is closer to cuts (Pictured: Chair Jerome Powell speaking at a press conference following the announcement)
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The Federal Reserve has held interest rates between 5.25 and 5.5 percent at its latest meeting
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Speaking at a press conference following the announcement, Powell said: ‘We have made no decisions about future meetings and that includes the September meeting.
‘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 policy rate.’
He said that this decision would be data dependent, but not a question of responding specifically to one or two data releases.
‘The question will be whether the totality of the data, the evolving outlook and the balance of risks are consistent with rising confidence on inflation and maintaining a solid labor market.