Federal Reserve Keeps Interest Rates Unchanged While Inflation Outlook Rises

The Federal Reserve announced its policy decision on Thursday. It left the target range for the federal funds rate unchanged. The central bank also revised its outlook, indicating higher inflation expectations. Officials cited persistent price pressures in the latest projections. The decision reflects a balance between supporting growth and curbing inflation. Financial markets reacted modestly, with bond yields edging higher. Analysts note the Fed may reassess rates if inflation accelerates further. The next policy meeting is scheduled for later this year, where the outlook will be reviewed.