Fed cites lack of progress on inflation, holds rates steady
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The Federal Reserve has decided to leave the target range for the benchmark federal funds rate at 5.25% to 5.5%, citing a lack of progress on inflation. This decision comes after three straight months of disappointing inflation figures and a major repricing of interest-rate expectations. The Fed also outlined plans to slow the pace of shrinking its asset portfolio. The cap on runoff for Treasuries will be reduced to $25 billion a month from $60 billion starting in June. The cap for mortgage-backed securities will remain unchanged at $35 billion. The decision to slow the process of quantitative tightening is independent of interest rate decisions. Fed Chair Jerome Powell will hold a press conference later today.

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https://m.economictimes.com/markets/stocks/news/fed-cites-lack-of-progress-on-inflation-holds-rates-steady/articleshow/109766825.cms