Federal Reserve Interest Rates

The Federal Reserve decided to keep interest rates steady for the sixth consecutive meeting, citing stalled progress on bringing down inflation. They left the benchmark federal funds rate unchanged and are waiting for more evidence that inflation is falling to its target of two percent.

Inflation

The personal consumption expenditure price index for services excluding housing and energy rose at the fastest pace since March 2022, indicating high inflation in the services sector. This is a historically rare occurrence and is seen as more persistent than goods inflation. Fed officials are closely monitoring this indicator for future inflation trends.