Fed holds interest rates at 23-year high as inflation hits plateau

By TAYLOR GIORNO  | The Hill

The Federal Reserve held interest rates at a 23-year high Wednesday as its battle to bring down inflation drags deeper into 2024.

The announcement follows a two-day meeting of the central bank’s monetary policy committee, which raised borrowing rates from near zero in March 2022 to a range of 5.25 percent to 5.5 percent as pandemic-induced inflation skyrocketed.

While inflation has dropped drastically from its 9 percent peak two years ago, the Fed has expressed concern that the economy is still too hot, the labor market is still too strong and prices are still rising too fast to start cutting rates.

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