The Federal Reserve's Federal Open Market Committee (FOMC) has opted to maintain the federal funds rate amid concerns over persistent inflation and economic uncertainties, according to the latest minutes.

Despite some moderation, inflation remains elevated, prompting a cautious approach to monetary policy adjustments.

The committee acknowledged incremental progress toward their inflation target but highlighted ongoing risks, including potential supply disruptions and geopolitical tensions affecting financial conditions.

Fed members expressed readiness to consider further rate hikes if inflation fails to decrease as anticipated, emphasising the need for sustained economic stability before policy adjustments.

Federal Reserve Chair Jerome Powell reiterated these sentiments, stressing the importance of ensuring inflation trends towards sustainable levels before any policy easing.