Federal Reserve says interest rates will stay at 20-year high until inflation further cools [Video]

WASHINGTON — The Federal Reserve on Wednesday emphasized that inflation has remained stubbornly high in recent months and said it doesn’t plan to cut interest rates until it has “greater confidence” that price increases are slowing sustainably to its 2% target.

The Fed issued its decision in a statement after its latest meeting, at which it kept its key rate at a two-decade high of roughly 5.3%. Several hotter-than-expected reports on prices and economic growth have recently undercut the Fed’s belief that inflation was steadily easing. The combination of high interest rates and persistent inflation has also emerged as a potential threat to President Biden’s re-election bid.

“In recent months,” Chair Jerome Powell said at a news conference, “inflation has shown a lack of further progress toward our 2% objective.”

It is likely that gaining greater confidence,” he added, “will take longer than previously expected.”

Powell did strike a note …