The Federal Reserve has decided to maintain interest rates steady at a 23-year high of 5.25-5.50%, marking the sixth consecutive meeting without a change. This decision comes amidst concerns that inflation has not sufficiently progressed towards the Fed's 2% target. Additionally, the Fed announced a significant reduction in the pace of its balance sheet reduction, lowering the monthly cap on Treasury securities redemptions from $60 billion to $25 billion starting in June. This adjustment reflects the central bank's cautious approach in response to recent economic data indicating persistent inflationary pressures. The Fed's wait-and-see posture could last well into the year if the economy doesn’t weaken.