US Federal Reserve leaves interest rates unchanged

The US Federal Reserve has tried to use the tools at its disposal to tinker with soaring prices. It has managed to wrench down inflation but is finding that it is sticking. It decided on Wednesday to leave its benchmark interest rate unchanged.

The Fed raised borrowing costs repeatedly, to levels not seen in more than two decades. However, it has kept its key interest rate at 5.25 percent to 5.5 percent for five meetings in a row.

Fed Chair Jerome Powell signaled that policymakers will reduce the rate, but only after they have "greater confidence."

Powell said, "We know that reducing policy restraint too soon or too much could result in a reversal of progress we have seen on inflation and ultimately require even tighter policy." He added that he and his colleagues need to "balance the risks" to their inflation and employment goals.

The Fed said inflation has eased but is still "elevated" and that job gains have "remained strong." Its economic projections suggested it was still leaning toward three rate cuts this year.