Federal Reserve Holds Interest Rates Steady, Signals Patience as Inflation Cools Slowly

WASHINGTON — The Federal Reserve left its benchmark interest rate unchanged on Wednesday for the third consecutive meeting, saying it needs more confidence that inflation is moving steadily toward its 2 percent goal before it lowers borrowing costs.

The central bank’s rate-setting committee kept the federal funds rate in a range of 4.25 to 4.5 percent, a level that affects the cost of credit cards, car loans, business loans and, indirectly, mortgages. The decision was widely expected by investors and economists.

What the Fed said

In a statement released at 2 p.m., the committee said economic activity has continued to expand at a “solid pace,” the job market remains healthy and inflation has eased over the past year but “remains somewhat elevated.” Officials said they would watch incoming data on prices, employment and spending before deciding on future moves.