The Federal Reserve has said it could start lowering interest rates as soon as September, after US policymakers voted to hold borrowing costs at a 23-year high for the eighth meeting in a row.
“A reduction in our policy rate could be on the table as soon as the next meeting in September,” Fed chair Jay Powell told a press conference on Wednesday, adding that there had been “a real discussion” at the Federal Open Market Committee this week about cutting rates.
The FOMC flagged “further progress” towards lowering inflation to its 2 per cent goal. But it maintained that officials would need even “greater confidence” before they were willing to cut.
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