Fed signals a halt in rate hikes, but no relief yet for consumers

The US Federal Reserve announced on Wednesday that it would keep the target range of the federal funds rate unchanged at 5-5.25 percent, following a slew of consecutive hikes since March 2022 that have raised federal benchmark interest rates from 0-0.25 percent to the current level, with a cumulative increase of 500 basis points.

"Holding the target range steady at this meeting allows the committee to assess additional information and its implications for monetary policy," the Federal Open Market Committee said in a statement issued after a two-day policy meeting.

A halt in interest rate hikes was widely expected as the year-on-year growth rate of the consumer price index in the United States dropped to 4 percent in May from 9.1 percent in June 2022.