The Federal Reserve said Wednesday that interest rates will stay at their two-decade high for now, but markets rose on news that despite continuing inflation, the Fed was still considering rate cuts later this year.
Fed Chair Jerome Powell also cheered investors, saying that the Fed didn’t plan on raising rates as its next move. The central bank still expects inflation to continue to cool, though more gradually than it thought three months ago.
“It is still likely,” Powell said, “that we will see that confidence and that there will be rate cuts.”
