Fed holds interest rates, but ECB tipped for July cut

The US Federal Reserve has held interest rates steady but signalled possible rate cuts of as much as half a percentage point over the remainder of this year, as it responded to increased economic uncertainty and a drop in expected inflation.

The US central bank said it “will act as appropriate to sustain” the expansion as it approaches the 10-year mark and dropped a promise to be “patient” in adjusting rates. Nearly half its policymakers show a willingness to lower borrowing costs over the next six months.