The Fed keeps interest rates at 23-year high

The Federal Reserve decided to maintain its benchmark lending rate, signaling fewer rate cuts than previously expected. Fed Chair Powell noted better-than-expected May inflation but wants to see further improvement before lowering borrowing costs. The Fed is waiting for evidence of inflation heading towards 2% before cutting rates. Economists predict the first rate cut may happen in September if inflation continues to decrease. Despite a strong economy and job market, high inflation is putting pressure on US consumers.