Fed holds rates at 3.5-3.75% due to elevated inflation
The Federal Reserve decided to keep its target for the federal funds rate unchanged at 3.5-3.75%. This decision was in line with expectations, but the Fed remains concerned about inflation.
The Fed noted that job gains have kept pace with the workforce, and the unemployment rate has changed little, but inflation remains elevated relative to the Committee’s 2 percent goal.
The Fed’s commitment to delivering price stability and achieving its 2 percent inflation target may lead to a September hike if oil prices remain high.