The Federal Reserve maintained its benchmark interest rate at a 23-year high of 5.25% to 5.5% but hinted at potential rate cuts in the near future.

While no immediate changes were made, the Fed’s statement and Chair Jerome Powell’s comments suggest that recent progress in lowering inflation could pave the way for rate reductions, possibly as soon as September.

The Fed is closely monitoring both inflation trends and labor market conditions to determine the timing and pace of future rate cuts.