Federal Reserve Maintains Interest Rates, Citing 'Lack of Progress.' Sees Future Rate Hikes 'Unlikely.'

The Federal Reserve held its benchmark interest rate steady between 5.25% and 5.5% after its May policy meeting, opting not to cut rates. The Fed noted a "lack of further progress" in reducing inflation and said a rate cut was inappropriate until the price rises move sustainably toward the 2% target.  The Fed did ease the pace of reducing its $7.4 trillion balance sheet, slowing the monthly cap on maturing bond redemptions. Fed Chair Powell said inflation remains too high and the path forward is uncertain, with the next move "unlikely" to be a rate hike.