The Federal Reserve announced on Wednesday that it will leave interest rates unchanged, citing a gradual moderation in consumer prices. Despite the progress in inflation, the Fed signaled it would lower interest rates just once this year, down from the three cuts anticipated in its previous March projection. Chair Jerome Powell emphasized caution, indicating that the central bank remains vigilant in its fight against inflation. UBS has adjusted its forecast, now expecting the 25 bp rate cut to occur in December instead of September. Meanwhile, Goldman Sachs and Morgan Stanley continue to anticipate a September rate cut. The Fed's decision reflects a divided stance among officials regarding future monetary policy. Interest rates remain at a two-decade high, and the Fed also signaled four cuts in 2025.