The US Federal Reserve kept the interest rate unchanged but hinted that there could be one cut between now and the end of the year as they continue the fight against inflation.

The Fed announcement came last night after a two-day meeting of its top officials. The benchmark interest rates remain unchanged between 5.25 per cent and 5.50 per cent for the seventh straight meeting.

The Federal Reserve expected to announce three cuts in 2024 as inflations showed signs of coming down, but decided against it every time as inflation stayed stubbornly high.

The Fed aims to bring inflation under two per cent. Rationalizing the Federal Reserve’s position, Chairman Jerome Powell said that the central bank will need to see more positive data including good inflation readings before it feels confident enough to lower interest rates.