Fed holds rates steady, expects to cut balance sheet relatively soon

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expect that announcement will come in September.

At the same time, a slowdown in inflation this year has caused jitters among some Fed officials who are already concerned that inflation has been below the central bank`s 2 percent target for five years.

The Fed`s preferred measure of underlying inflation dropped to 1.4 percent in May. It was 1.8 percent in February.

No Fed policymakers dissented in Wednesday`s decision.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)