The Federal Reserve holds interest rates steady but signals rate cuts may be coming

Fed Chair Jerome Powell speaks during a news conference after the concludion of the Fed's policy meeting in Washington, D.C., on Sept. 20, 2023. The Fed held interest rates steady on Wednesday but indicated it could cut rates this year while also noting it would move cautiously. (Chip Somodevilla/Getty Images)

The Federal Reserve held interest rates steady on Wednesday but signaled that rates could fall in the coming months if inflation continues to cool.

Policy makers have kept their benchmark interest rate between 5.25% and 5.5% — the highest in over two decades — since July.