Fed not cutting interest rates, inflation remains at 23-year high [Video]

The Federal Reserve has announced that it will not be cutting interest rates until it has “greater confidence” that price increases are slowing, as inflation in the US remains at a 23-year-high.

In a statement, released on Wednesday, the Fed said that economic activity had continued to expand “at a solid pace” but there had been a “lack of further progress” towards its 2 per cent inflation objective.

“Job gains have remained strong, and the unemployment rate has remained low,” the statement read. “Inflation has eased over the past year but remains elevated. In recent months, there has been a lack of further progress toward the Committee’s 2 percent inflation objective.”

Following its latest committee meeting, led by Chair Jerome Powell, the central bankdecided that its key interest rate would remain unchanged at between …