Fed Signals Rates Will Be Lower for Longer

The Federal Reserve has decided to maintain interest rates at 1/4 percentage point, emphasizing a 'lower for longer' approach. Despite previous expectations for multiple rate hikes, the Fed now anticipates a slower pace of increases, reflecting a more dovish stance. Economic indicators, such as a weak jobs report, have influenced this decision. The Fed remains cautious, with no immediate plans to adjust rates, and is committed to gradual normalization over time.

What factors are influencing the Fed's decision to hold interest rates steady?

What does the Fed mean by 'gradual' in terms of rate increases?