Federal Reserve Holds Steady on High Interest Rates Amidst Inflation Challenges

The Federal Reserve (Fed) stands firm on its current high interest rate policy, aiming to combat persistent inflation that continues to exceed target levels. This stance was confirmed by Fed official Musalem, who stated that the decision to maintain these rates is supported by a robust job market and strong labor dynamics. He expressed skepticism towards a potential rate cut during the September meeting, with the possibility now widely considered the default option.