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Fed Needs More Confidence In Inflation Drop Before Cuts

FED
  • (MNI) WASHINGTON - The Federal Reserve left interest rates on hold for a fourth meeting Wednesday and pushed back against market expectations for an imminent cut in interest rates, saying it does not expect to reduce borrowing costs until officials are more certain inflation is heading comfortably back to 2%.
  • "The committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%," the Fed said in its post-meeting statement.
  • That was a shift from previous guidance stating the FOMC was mulling "the extent of any additional policy firming that may be appropriate."

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