The Federal Reserve announced on Wednesday that it would not cut interest rates, keeping them at 5.25% to 5.5%.
The central bank said it "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 percent."
However, it noted that it expects to cut the interest rate one time this year. It was previously forecast that there would be three rate cuts this year.
The inflation rate was 3.4% for the 12-month period ending in April and 3.5% for the year ending in March.
Noting that inflation has eased over the past year, the Federal Reserve said it's still too high to justify a rate cut right now.
"The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the Federal Reserve said in a statement.
Earlier Wednesday, the U.S. Consumer Price Index showed that the price of goods and services increased by 3.3% in the 12-month period ending in May.
However, shelter prices continue to rise. Shelter was 5.4% higher in May 2024 than a year earlier.
