Fed Holds Rates Steady, Noting Lack of Progress on Inflation

Federal Reserve officials left interest rates unchanged and signaled that they were wary about how stubborn inflation was proving, paving the way for a longer period of high borrowing costs.

The Fed held rates steady at 5.3 percent on Wednesday, leaving them at a more than two-decade high, where they have been set since July. Central bankers reiterated that they needed “greater confidence” that inflation was coming down before reducing them.

“Readings on inflation have come in above expectations,” Jerome H. Powell, the Fed chair, said at a news conference after the release of the central bank’s rate decision.

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