The Fed is also tipped to signal a slower path of cuts going forward amid uncertainty over the impact of President-elect Donald Trump's economic proposals.
New York Fed President John Williams said inflation was now "within striking distance" of two percent.
The Fed has a dual mandate from Congress to act independently to tackle both inflation and unemployment -- primarily by raising and lowering interest rates.
Employment data for October was among the weakest of recent reports, with prior months revised lower and only 12,000 jobs added
This year marks the third highest US deficit, behind 2021 and 2020, according to the Treasury
The move marks a significant pivot in US monetary policy and a recognition of the Fed's growing comfort with inflation continuing to ease to its target. It is currently about half a percentage point above it.
"The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the Fed said in a statement.
The PCE price index rose at an annual rate of 2.7 percent in March, up 0.2 percentage points from a month earlier
The US Federal Reserve voted Wednesday to keep interest rates at a 23-year high for a fifth consecutive meeting, while signaling it still expects to make three cuts this year
The Fed is also tipped to signal a slower path of cuts going forward amid uncertainty over the impact of President-elect Donald Trump's economic proposals.
New York Fed President John Williams said inflation was now "within striking distance" of two percent.
The Fed has a dual mandate from Congress to act independently to tackle both inflation and unemployment -- primarily by raising and lowering interest rates.
Employment data for October was among the weakest of recent reports, with prior months revised lower and only 12,000 jobs added
This year marks the third highest US deficit, behind 2021 and 2020, according to the Treasury
The move marks a significant pivot in US monetary policy and a recognition of the Fed's growing comfort with inflation continuing to ease to its target. It is currently about half a percentage point above it.
"The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the Fed said in a statement.
The PCE price index rose at an annual rate of 2.7 percent in March, up 0.2 percentage points from a month earlier
The US Federal Reserve voted Wednesday to keep interest rates at a 23-year high for a fifth consecutive meeting, while signaling it still expects to make three cuts this year
The Federal Reserve System (Fed), the arbiter of monetary policy in the US, is facing a number of challenges
