The United States Federal Reserve has opted to keep interest rates at their current 23-year high, citing a need for more consistent evidence that inflation is moving toward its 2% target. In its latest quarterly projections, the central bank signaled that only one rate cut is expected by the end of the year, down from the three cuts projected in March. Fed Chair Jerome Powell stated that while recent inflation data has been encouraging, the committee remains 'highly attentive' to inflation risks and will maintain a data-dependent approach. Economists suggest the decision reflects a cautious balancing act between cooling the economy and avoiding a premature pivot that could reignite price growth. Meanwhile, market participants are closely monitoring labor market trends for signs of a potential shift in policy timing later this fall.