The Fed is also tipped to signal a slower path of cuts going forward amid uncertainty over the impact of President-elect Donald Trump's economic proposals.
New York Fed President John Williams said inflation was now "within striking distance" of two percent.
The Fed has a dual mandate from Congress to act independently to tackle both inflation and unemployment -- primarily by raising and lowering interest rates.
Employment data for October was among the weakest of recent reports, with prior months revised lower and only 12,000 jobs added
This year marks the third highest US deficit, behind 2021 and 2020, according to the Treasury
The move marks a significant pivot in US monetary policy and a recognition of the Fed's growing comfort with inflation continuing to ease to its target. It is currently about half a percentage point above it.
"The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the Fed said in a statement.
The PCE price index rose at an annual rate of 2.7 percent in March, up 0.2 percentage points from a month earlier
The US Federal Reserve voted Wednesday to keep interest rates at a 23-year high for a fifth consecutive meeting, while signaling it still expects to make three cuts this year
The Federal Reserve's dovish December pivot has boosted the case for the weakening dollar to keep falling into 2024
The US Federal Reserve is widely expected to hold interest rates at a 22-year high for a third consecutive meeting on Wednesday as it continues to fight elevated inflation.
What happened to the 40-year-old bank that was so highly regarded among all stakeholders in America’s tech sector?
Investors are gauging whether the US Federal Reserve has reached the peak of its aggressiveness in hiking rates, with some saying they're ready to up risky positions again.
Finance Minister AMA Muhith says the investigation report on reserve heist of the Bangladesh Bank is not being made public as a case is pending with a court in the Philippines.
The Federal Reserve Bank of New York will be sued following the hacking of around $100 million (Tk 780 crore) from foreign currency account of Bangladesh Bank, Finance Minister AMA Muhith tells journalists at his finance ministry office.
The 2015 Nobel season wraps up with the announcement of the winner of the economics prize, which could go to research into the job market or consumer behaviour, though no obvious frontrunner stands out.
