US Fed maintains interest rates at 2-decade high, citing ongoing inflation concerns

The Federal Reserve has maintained a cautious stance on interest rate cuts, citing persistent high inflation as a major concern. Despite expectations for three quarter-point reductions, Powell indicated that the central bank may carry out fewer rate cuts or even maintain the current level of rates if higher inflation persists. The Fed's decision to keep benchmark interest rates unchanged is likely due to the unexpected rise in annual US consumer prices from 3.2% in March.