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The Federal Reserve announced on Wednesday its decision to maintain interest rates at the current levels for September.

However, it expressed intentions to implement an interest rate increase before the year's end with the aim of reducing inflation from its current rate of over 3% to its desired target of 2% annually.

"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run," the US central bank said after a meeting of its Federal Open Market Committee, or FOMC.

"In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent."  

Between February 2022 and July 2023, the Federal Reserve implemented 11 interest rate hikes, resulting in a cumulative increase of 5.25 percentage points from the initial base rate of 0.25%.

Read more: US inflation hikes in July for first time in 13 months

Consumer inflation has decreased from a year-over-year peak of 9.1% in June 2022 to 3.7%, but it remains well above the Federal Reserve's 2% target.

Earlier this month, the Fed's policymakers said they are not yet ready to declare victory over the most severe bout of inflation seen in the past 40 years.

The Federal Reserve's most recent decision has kept its benchmark rate at approximately 5.4%, a result of the 11 rate hikes initiated since March 2022.

These hikes have notably increased the costs associated with consumer and business loans.

In their efforts to fine-tune their rate policies, the central bank is striving to guide the US economy toward a challenging "soft landing," which aims to cool down inflation without triggering a severe recession.

Read more: US recession possible, Fed chairman says amid inflation pessimism