Unchanged, as expected, the Federal Bank of the USA, FED, kept interest rates unchanged. However, it signaled that it is likely to cut interest rates in September as inflation approaches its target.

Central bankers stopped short of making a clear statement that a rate cut is imminent, choosing to adopt a stance that suggests continued concerns about economic conditions, although they see some progress. In addition, they continued on the rhetoric that further progress is needed before making cuts.

“The Commission considered that the risks to the achievement of the unemployment and inflation targets continue to move towards a better balance” the Federal Open Market Committee said in its announcement, using softer language than the previous announcement.

“Inflation has eased over the year but remains somewhat high” the announcement states. “In recent months there has been some progress towards the 2% target”

In addition, the central bank withdrew the phrase it used in recent announcements that it “shows particular attention to inflation risks” and replaced it with the phrase that it “shows attention to risks on both sides of its dual mandate.”