Fed Keeps Rates Unchanged, Powell Cites Slowing Progress on Inflation

Powell Says It Will Take Longer Than Expected to Become Confident About Inflation

Fed Chairman Powell Discusses FOMC Rate Decision

WASHINGTON, D.C. - The Federal Reserve Board of Governors voted to keep interest rates unchanged at its meeting today. The decision was widely expected, as the central bank has been holding rates steady since March 2020 in an effort to support the economy during the COVID-19 pandemic.

In a press conference following the meeting, Fed Chairman Jerome Powell said that the economic recovery is continuing, but that progress on inflation has been slower than expected. He said that the Fed will continue to monitor the data closely and that it is prepared to adjust its policy stance as needed.

The Fed's decision to keep rates unchanged comes as the U.S. economy faces a number of challenges. Inflation has been rising in recent months, and the labor market remains weak. The central bank is also facing pressure from the Biden administration to keep rates low in order to support economic growth.

Powell's comments suggest that the Fed is likely to keep rates unchanged for the foreseeable future. He said that the central bank will need to see more progress on inflation before it begins to raise rates.