The Fed holds interest rates steady for third consecutive time

The Federal Reserve said Wednesday it will hold interest rates steady at a 22-year high for the third consecutive meeting, as US economic growth slows and investors look toward the beginning of rate cuts sometime next year.

The Fed has raised rates 11 times since March 2022 to combat high inflation, which has slowed markedly after hitting a four-decade high last summer.

Still, the central bank hasn’t crossed the finish line just yet. Officials are expecting inflation to cool next year at a slightly faster pace than previously estimated, according to their latest set of economic projections released Wednesday.

Some economists say the final mile of the Fed’s historic inflation fight will be the most difficult, and Fed Chair Jerome Powell and other officials say that additional rate hikes remain on the table.