The Federal Reserve holds interest rates steady but signals rate cuts may be coming

The Federal Reserve held interest rates steady on Wednesday but signaled that rates could fall in the coming months if inflation continues to cool.

Policy makers have kept their benchmark interest rate between 5.25% to 5.5% — the highest in over two decades — since July.

In its post-meeting policy statement, the Fed's rate-setting committee replaced a reference to possible future rate hikes with a more neutral reference to "adjustments" in interest rates.

Still, policymakers added a note of caution.

"The Committee does not expect it will be appropriate to reduce...