The FOMC rate decision has been announced, and the Federal Reserve has decided to keep interest rates unchanged. In a press statement, the Federal Reserve stated that inflation risks have eased in recent months.

The Consumer Sentiment report was the largest release in an otherwise light week. The report showed that sentiment has improved over the last couple of months. However, this improvement comes against the backdrop of consumer sentiment having dropped more than 30 points since January and remaining at relatively low levels throughout the year.

Inflation numbers are in and came in much higher than expected. Even the core inflation numbers for both reports were higher than anticipated. Core inflation is intended to exclude some of the most volatile components, including food and energy costs, painting a picture in which the Federal Reserve will need to continue its tightening measures until inflation is under control.

The FOMC Minutes and Consumer Sentiment report were the most impactful calendar items last week, further reinforcing the Federal Reserve’s resolve to bring inflation down to its 2% target rate.