Fed Decides to Keep Interest Rates Unchanged for the First Time Since January 2022

The Federal Reserve has decided to keep the key interest rates unchanged at 5% and 5.25% for the first time since January 2022.

This decision comes after inflation data showed a slowdown beyond expectations during the past month of May.

The annual inflation rate in the United States slowed down to 4% in May from 4.9% in April, and the monthly inflation rate in May decreased to 0.1% from 0.4% in April.

In a statement following the meeting, the Federal Reserve mentioned that policymakers would take the next six weeks (until the next meeting) to observe the effects of policy movements, as the Fed engages in the battle against inflation.