**FOMC Holds Steady, Eyes on Inflation**

The Federal Reserve held interest rates unchanged at today's FOMC meeting, maintaining the target range at 5.25%-5.50%. While acknowledging "modest further progress" on inflation, policymakers emphasized the need for greater confidence before considering cuts. The statement highlighted a strong labor market but persistent elevated price pressures. Chair Powell indicated future decisions remain data-dependent, with no clear timeline for easing. Markets reacted cautiously, parsing hints about potential rate reductions later this year if economic conditions soften. The Fed reaffirmed its commitment to returning inflation to the 2% target.