Fed officials voted unanimously this afternoon to hold the overnight target range steady at 5.25% to 5.50% for the eighth consecutive meeting, while tweaking language in their one-page official statement to lay the foundation for a possible rate cut in September. The key wording change from the June meeting replaces “the Committee remains highly attentive to inflation risks” with “the Committee is attentive to both sides of its dual mandate.” In other words, the Fed is aware that holding rates at elevated levels for too long would have a negative effect on the labor market.

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