The Federal Reserve has held interest rates constant, despite inflation falling faster than predicted.

Fed Chair Jerome Powell stated that people are not writing down rate hikes in their current economic projections, and that they are not the base case anymore.

The Fed is now at the point where both mandates are important, with officials concerned about overdoing it and slowing the economy too quickly.

The Fed must balance stable prices and maximum employment, which sometimes conflict.

After reaching a 40-year high last year, Powell said authorities are nearing a “soft landing” with inflation reverting to the Fed’s 2% objective in a slowing but not crashing economy with low unemployment.