Fed leaves rates unchanged, but signals no rush to cut By

-- The what are the mt4 tradersFederal Reserve left interest rates unchanged Wednesday, and welcomed further progress on inflation, though signaled there was no rush to cut rates amid ongoing strength in the economy and labor market.

"The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent," the Fed said in its monetary policy statement on Wednesday. 

The Federal Open Market Committee, or FOMC, left its in a range of 5.25% to 5.50%.

It was the fifth-straight meeting that the FOMC decided to keep monetary policy steady as recent economic data --- showing slowing inflation, but a still strong labor market -- has fueled expectations that the Fed could deliver a soft landing by reining in inflation to its 2% target without causing a major spike in unemployment.

The latest reading on , the Fed's preferred measure of inflation, fell below 3% on an annualized basis in December for the first time since April 2021.

While the odds of a March cut to about 55% from a peak of 80% earlier this year, investors are still expecting the Fed to deliver between five and six rate cuts this year. That is well beyond the Fed’s December projections for three rate cuts this year.

At the FOMC press conference at 14:30 PM ET (19:30 GMT), Federal Reserve Jerome Powell’s remarks will be closely to watch for fresh clues on whether the Fed chief will push back against dovish market expectations.

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