The US central bank, known as the Fed, has again kept interest rates high – at 5.25% to 5.5%.
It comes despite the policymaker signaling in January that interest rate cuts were around the corner.
Progress in bringing down rates and making borrowing cheaper has been hampered by rising inflation in the US.
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It could now be that US rates are only cut once in 2024, less than had been expected, as high rates are deemed necessary to take money out of the economy and slow the pace of price rises.
Data released last week showed inflation grew 3.5% in March, up from 3.2% in February and 3.1% in January – above the Fed’s inflation target and higher than economists expected.
Inflation falls are not guaranteed Mr Powell said on Wednesday, “Further progress in bringing it down is not assured and the path forward is uncertain”.
More confidence that inflation is under control will be needed before policymakers move to cut due to recent inflation figures.
Gaining that confidence will take “longer than previously expected”, he added.
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In addition to the typical statement from the Fed in recent months it highlighted this concern: “In recent months, there has been a lack of further progress toward the Committee’s 2% objective.”
It signals that interest rates will remain higher for longer but another hike was said to be “unlikely” by Mr Powell.
“The committee does not expect it will be appropriate to reduce the target range [of interest rates] until it has gained greater confidence that inflation is moving sustainably toward 2%,” the Fed said.
The Fed chair would not be drawn on if, and possibly when, rates would be cut this year. “There are paths to cutting, there are paths to not cutting”, he told reporters.
Central banks in the UK, US, and EU are all aiming to bring inflation down to 2%.
The Bank of England faces a similar decision next week when it will announce its own interest rate decision.
Markets had been expecting a cut in May, but are now not expecting one until August, according to data from Refinitv.
Unlike the UK, the US interest rate is a range rather than a single percentage – the Fed does not set a specific figure. Instead, the numbers are a target rate to guide lenders.
A man has been charged with murder after 14-year-old Daniel Anjorin was killed and four people were injured near a London Tube station.
Two Metropolitan Police officers were among those hurt as they responded to reports of an attacker with a sword in Hainault, northeast London, on Tuesday.
The man charged has been named as Marcus Aurelio Arduini Monzo, a 36-year-old dual Spanish-Brazilian national from Newham, east London.
He has also been charged with two counts of attempted murder, two counts of grievous bodily harm, aggravated burglary and possession of a bladed article.
Monzo will appear at Barkingside Magistrates’ Court on Thursday.
The families of all those affected by the incident have been informed.
Daniel Anjorin was killed as he walked to school. Pic: Met Police
Daniel Anjorin was a pupil at Bancroft’s private school in Woodford Green – also attended by Nottingham attack victim Grace O’Malley-Kumar.
Staff and pupils at the school said they were in “profound shock and sorrow” at his death.
Daniel’s family told Sky News he was “a wonderful child” who was “well loved” and “hard working” – and that his death “leaves a gaping wound in the family”.
“No family should have to go through what we are experiencing today,” they said. “Any family will understand it’s an absolute tragedy.”
Floral tributes for Daniel have been placed in Hainault. Pic: PA
Monzo is accused of crashing a van into a fence just before 7am, and attacking two members of the public with a sword.
It is alleged he then killed the 14-year-old and seriously injured two police officers as they tried to stop him – one of whom nearly lost her hand.
The suspect was initially taken to hospital after suffering injuries in the van crash.
Jaswant Narwal, chief crown prosecutor for CPS London North, said: “Our thoughts remain firmly with the family of Daniel and all those who have been impacted by this horrific incident.”
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“We remind all concerned that criminal proceedings against the defendant are active and that they have a right to a fair trial,” she continued.
“It is extremely important that there should be no reporting, commentary or sharing of information online which could in any way prejudice these proceedings.”
The Met Office has issued warnings for rain and thunderstorms – with the alerts in place until Thursday morning.
The first warning began at 8pm and covers an area stretching from Portsmouth to Plymouth, and northwards to South Wales, and lasts until 8am.
Heavy rain is expected, with a chance of thunderstorms, and the Met Office said it could bring difficult driving conditions and some flooding.
The second warning kicks in at 11pm and covers nearly all of southeast England, stretching as far north as Oxford and including London. It’s in force until 6am on Thursday.
“Thunderstorms are likely at times later this evening and overnight, leading to travel disruption and some flooding,” said the Met Office.
There will be a risk of sudden flooding and power blackouts in both affected warning areas, added the forecaster.
There’s also a chance of hail and strong winds.
Flooding and lightning strikes could cause disruption on the roads, as well as delays and cancellations to rail and bus services.
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Around 2cm to 4cm of rain is expected overnight, with 5cm possible in some places.
“Much of this rain may fall over a two or three-hour period,” the Met Office said.
Met Office meteorologist Alex Deakin said: “You may well get woken up tonight by a rumble of thunder, or some flashes of lightning across parts of the South.
“A lot of heavy rain falling in a short space of time as well.”
He said it could create a lot of spray and surface water on the roads for commuters on Thursday morning.
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Elsewhere, it will stay dry with temperatures mostly holding up in double figures across England and Wales, or staying at around 8C to 9C in towns and cities further north.
Deakin said: “A cloudy start then to Thursday one way or another, still some heavy bursts of rain early on across the South West.
“That should tend to clear away, but always the likelihood of further showers across southern parts of England, Mid and South Wales.”
He added: “Parts of northwest Scotland, Northern Ireland, northwest England, much of the Midlands down towards East Anglia should have a fine and sunny day tomorrow.”
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