by Luzi Ann Santos | moomoo News
The Federal Open Market Committee kept interest rates unchanged at a range of 5.25% and $5.5%, citing progress toward policymakers' 2% inflation goal in recent months.
"Job gains have moderated, and the unemployment rate has moved up but remains low. Inflation has eased over the past year but remains somewhat elevated," according to the FOMC statement released Wednesday, after their two-day meeting. "In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks."
At 2:30, Fed Chairman Jerome Powell will address reporters at a press conference. The market is looking for some hints on the timing of the interest rate cuts, as the latest economic data signal some cooling in the labor market just as inflation is cooling.
Earlier Wednesday, data from the Bureau of Labor Statistics showed labor costs rose less than expected in the second quarter, adding to signs of easing inflation pressures. Private employment rose 122,000 in July, the smallest increase since the start of the year, according to a report by the ADP Research Institute.
Pay gains for job-stayers slowed to 4.8% in July, the slowest pace of growth in three years, according to the ADP report.
"With wage growth abating, the labor market is playing along with the Federal Reserve's effort to slow inflation," Nela Richardson, chief economist at ADP said. "If inflation goes back up, it won't be because of labor."
The market is currently pricing near certainty that the Fed will cut interest rates by 25 basis points in its next meeting in September, according to the CME FedWatch tool.
Join us here for the FOMC press conference. We'll also do a live blog as Powell addresses the media.
