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Fed expected to hold rates steady in July despite cooler inflation

Officials have signaled the possibility of additional rate action later, even if inflation shows improvement.

Reported · Written up by our desk · Central Banks

The New York Times reports that the Federal Reserve is expected to keep interest rates unchanged at its July meeting.

While inflation may be running cooler than before, the paper says Fed officials have not ruled out the chance of a rate increase in the period after the meeting.

The key takeaway, according to the report, is that improved inflation data may not be enough on its own to guarantee that policy stays restrictive for the long term.

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