The Federal Reserve opted to hold interest rates steady at its latest meeting in June, following a period of aggressive rate hikes in 2022 and 2023 aimed at curbing inflation.

This pause signals a wait-and-see approach from the Fed, as they assess recent signs of inflation moderation.

While consumer prices remain above the Fed’s 2% target, data suggests they might be peaking. This has led some to speculate about potential rate cuts later in 2024. However, Fed officials have emphasized their commitment to bringing inflation down and haven’t ruled out further rate increases if necessary.

The next Fed meeting is scheduled for late July, and any decision on rate hikes will depend on incoming economic data. The Fed will be closely monitoring inflation trends and labor market strength to determine the appropriate course for monetary policy.