From CNBC: 2024-07-31 14:45:42

Federal Reserve officials keep short-term interest rates steady, hint at future cuts as inflation nears target. Chair Jerome Powell suggests a cut could come as soon as September if economic data supports. Markets rally after committee decision.

FOMC maintains benchmark rate between 5.25%-5.5% for a year. Statement notes progress towards inflation target, tightening of language, removal of “highly” from risk statement. Fed remains data-dependent, emphasizing commitment to 2% inflation target despite pressure to tolerate higher levels.

Economic data shows price pressures easing. GDP grows 2.8% in Q2 with boost from consumer, government spending. Unemployment at 4.1%, holding steady but indicating possible labor market weakening. Positive inflation data on wages, benefits increase at slowest pace in three years.

Federal Reserve vows cautious approach as inflation declines and concerns over economy grow. Pending home sales surge 4.8% in June, defying expectations. Fed maintains position that target range adjustment will come with greater confidence in moving inflation towards 2%.

Read more: Fed holds rates steady and notes progress on inflation