The Federal Reserve has decided to maintain the federal funds interest rate at a range of 5.25% to 5.50%, marking a continuation of its policy stance amidst ongoing efforts to combat inflation. This decision keeps the rate at a 23-year high for the sixth consecutive meeting, reflecting the central bank's ongoing two-year tightening campaign. The balance sheet reduction is proceeding as planned, with interest on reserves balances remaining unchanged at 5.40%. This move, widely anticipated by market observers and under the leadership of Jerome Powell, comes as the Fed aims to navigate the economy through persistent inflationary pressures. The central bank still projects three rate cuts this year, adjusting its median inflation rate forecast to 2.6% for the year, with rates having remained unchanged since July 2023.