Fed holds interest rates steady, signals it is not ready to start reducing rates

The Federal Reserve on Wednesday held interest rates steady for the fourth straight time, and cracked open the door to reducing rates later this year if inflation continues to subside.

The widely expected decision left interest rates unchanged at a range of 5.25% to 5.5%, the highest level in 22 years.  

Policymakers also made substantial changes to their post-meeting statement, softening some of its hawkish language. Officials dropped a sentence that suggested additional hikes may be warranted and swapped in more neutral language about the path of monetary policy in coming months.

The policy-setting Federal Open Market Committee acknowledged that the "risks to achieving its employment and inflation goals are moving into better balance," but cautioned that rate cuts are not imminent.