The Fed holds interest rates steady. Here's when a rate cut could happen.

The Federal Reserve is leaving its benchmark interest rate unchanged as policy makers wait for more evidence that inflation is back on track as the economy cools. 

Members of the Federal Open Market Committee, the central bank's rate-setting panel, said in a policy statement on Wednesday that they will hold the federal funds rate in a range of 5.25% to 5.5%, leaving it at its highest level in 23 years. The Fed's announcement, which was widely expected by investors, means the federal funds rate has been parked at that level since July 2023, when the central bank last raised rates. 

Although Fed officials had telegraphed their intent to stand pat, Wall street analysts are keenly watching for any signals from the central bank that is could cut rates at its next meeting, which will be held from September 17-18. About 9 in 10 economists have penciled in the September meeting for the Fed's first rate cut since 2020, pointing to inflation that is easing faster than expected.