Federal Reserve leaves interest rate unchanged. Now the question is when it might cut.

The Federal Reserve on Wednesday said it is holding its benchmark interest rate steady, extending a reprieve for borrowers after the fastest series of hikes in four decades. 

The central bank said it will maintain the federal funds rate in a range of 5.25% to 5.5%, marking the third consecutive pause since July, when it last raised rates.

Fed officials have raised the federal funds rate 11 times since starting the tightening cycle in March of 2022 to combat the hottest inflation in 40 years. The strategy has largely succeeded in dousing inflation and even led prices to fall for some products, such as used cars, furniture and appliances.