The Federal Reserve left interest rates unchanged during its policy meeting Wednesday but signaled it could cut rates in 2024.

It maintained its target federal funds rate of 5.25-5.50%

What You Need To Know

  • The Federal Reserve left interest rates unchanged during its policy meeting Wednesday

  • It maintained its target federal funds rate of 5.25 to 5.50%

  • The Fed cited slowing but strong job gains and low unemployment among its reasons for keeping the rate as is

  • Its its summary of economic projections, the Fed indicated it could cut borrowing costs three times in 2024

“Recent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter,” the Fed said in its notes following the meeting.

The Fed cited slowing but strong job gains since earlier in the year and low unemployment as reasons for its decision to keep rates steady, while acknowledging that inflation has slowed but remains elevated. It said tighter financial and credit conditions are likely to weigh on the economy with uncertain effects.

The central bank reiterated its strong commitment to pursuing an inflation rate of 2% but is “prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.”

In its summary of economic projections Wednesday, the Fed indicated it could cut borrowing costs three times in 2024.

This is a developing story. Check back later for further updates.