The U.S. Federal Reserve again maintained its current benchmark interest rate in latest Federal Open Market Committee statement on July 30, while noting progress in the central bank’s preferred metrics for inflation and the job market that would influence a forthcoming rate cut.

For now, the current Fed rate of 5.25-5.50% remains at a 23-year high.

In a statement following the its two-day FOMC meeting, the Fed noted that “Job gains have moderated, and the unemployment rate has moved up but remains low. Inflation has eased over the past year but remains somewhat elevated. In recent months, there has been some further progress toward the committee’s 2% inflation objective.”

“At this point, the shift in the labor market appears to be normalization after it ran hot for some time. Not more than that,” Fed Chair Jerome Powell told media in a news conference after the meeting.

Rate Cut as Soon as September?

The Fed’s next FOMC meeting is Sept. 17-18, Powell acknowledged that’s when a long-awaited rate cut could arrive.

“The question will be: where the totality of the data, the evolving outlook, and balance of risks are consistent with rising confidence and maintaining a solid labor market. If that test is met, the reduction of the policy rate could be on the meeting as soon as September,” Powell told media.

He added: “I can imagine a scenario in which there would be everywhere from zero cuts to several cuts… I don’t want to give specific forward guidance.”

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That latter bit suggests Powell is keeping all options open and not committing to one signal either way. Even so, expectations of a September rate cut are likely to rise heading into that next FOMC meeting.