US Federal Reserve (Fed) Keeps Interest Rates Steady, Hints at Possible Cut in September

The US Federal Reserve (Fed) has announced that it will maintain its key interest rates at the current levels, indicating a potential rate cut in September. While inflation has been declining, it still remains above the Fed's 2% target.

The Fed has been cautious in easing its policies, despite previous rate hikes, in order to balance inflation and employment. The decision comes amidst an uncertain economic outlook and potential political pressure.

Fed Chair Jerome Powell expressed optimism but emphasized the need for careful consideration. The market reacted positively, with bond yields and the dollar rising, and stocks rallying.

The Fed's next meeting in September will provide further insights into possible rate cuts. Meanwhile, in Japan, the central bank raised its policy rate to 0.25% in an effort to strengthen the yen and mitigate rising import prices.

The Bank of England is also facing a challenging decision on a potential rate cut, as inflationary pressures persist while the job market cools in certain sectors.