Fed Meeting Today: No Interest Rate Cut, but September Looks Promising

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See you in September. That pretty much sums up the sentiment of the Federal Reserve, which once again voted to hold interest rates steady, as most experts expected. But the Federal Open Market Committee’s statement following today’s meeting will likely raise hopes of a rate cut in September. 

This story is a part of Fed Watch, CNET’s coverage of the Federal Reserve’s Open Committee meetings and what’s next for interest rates.

After voting to leave the federal funds rate at a target range of 5.25% to 5.50% for an eighth consecutive time, the Fed said it has made “some further progress” on inflation. That’s Fed-speak for “inflation is going down.” 

The language in the Fed’s policy statements changes minimally from month to month, so any edits are analyzed by the media, financial experts and the stock market. Last month, the Fed said there had been “modest further progress.” The slight uptick in confidence is about as bold as the Fed will likely get this month.

Most experts predict an interest rate cut in September, with some optimists betting on two cuts before the end of the year. Those cuts could finally spell some relief for Americans who’ve been waiting for rates to drop before taking out a new loan or mortgage, as well as those paying off high-interest credit card debt. 

The Fed began raising interest rates two years ago in an effort to bring down inflation, which is currently at 3% year over year, according to the Consumer Price Index, but peaked at 9.1% in June 2022. The Fed has held interest rates at its 23-year high since last summer in an effort to bring inflation down toward its target of 2%.

We’ll update this story after Fed Chair Jerome Powell’s press conference, which starts at 2:30 p.m. ET.

Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.