The Federal Reserve paused interest rate hikes after 10 consecutive increases, saying that it is strongly committed to its 2% inflation goal.
After 10 straight increases, the Fed's rate-setting committee voted to hold its benchmark lending rate between 5.0% and 5.25%, the central bank said in a statement. It added that doing so allows policymakers "to assess additional information and its implications for monetary policy."
The Federal Open Market Committee (FOMC), however, noted that inflation remains elevated.
"Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy," it said. "In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments."
The decision to keep interest rates unchanged was unanimous as all 11 members of the FOMC voted in favor of the move.
It is the first rate hike skip by the Fed since January 2022 as the central bank raised interest rates by a total of 500 basis points from March 2022 to May 2023 in 10 meetings to fight record inflation that climbed last summer to its highest in more than 40 years.
