The U.S. Federal Reserve held interest rates steady on Wednesday and signaled it is still leaning towards eventual reductions in borrowing costs, but put a red flag on recent disappointing inflation readings and suggested a possible stall in the movement towards more balance in the economy.

The Federal Reserve needs more time before cutting interest rates, as hotter-than-expected inflation zaps any need for policymakers to take pressure off the economy. That was the message from central bank chief Jerome H.

The Federal Open Market Committee kept the federal funds rate unchanged at a range of 5.25% to 5.5% following its two-day meeting. Since March 2022, the Fed has raised the funds rate, which is now at its highest level since 2001, 525 basis points, though rates have been at the current level since July.