WASHINGTON — The Federal Reserve held its benchmark interest rate steady on Wednesday, a widely expected decision that still reset the tone for markets after a softer July inflation report.
In a statement released after a two-day meeting, officials said progress on prices had resumed after a choppy spring, but they stopped short of signaling an immediate cut. Policymakers again described the labor market as solid, with hiring slower than a year ago and layoffs still contained.
July’s consumer price data showed a cooler monthly reading than economists had penciled in, led by airfares, used vehicles and some grocery categories. Rent and medical services rose more slowly than in June, though they remain the main reason inflation has not returned to the Fed’s 2 percent goal.
Chair Jerome H. Powell, speaking at the post-meeting news conference, said the committee wanted “greater confidence that disinflation is durable” before easing. He declined to lock the board into a September move, saying incoming jobs and price reports would decide the path.
Treasury yields slipped after the announcement, and the dollar eased against a basket of major currencies. Equity indexes finished mixed, with rate-sensitive housing and utility shares firmer and some large technology names giving back early gains.
Outside the Fed, regional bank executives told USA News that commercial real estate refinancing remains tight, even as consumer loan demand has stabilized. Mortgage rates eased a fraction from July highs but are still high enough to keep existing-home turnover muted.
The next inflation print and the August employment report will arrive before officials gather again. For households, the decision means credit-card and auto-loan rates stay elevated for now — and that any relief is more likely in the autumn than this month.