Federal Reserve officials are signaling that they want more evidence before making another move on interest rates, as they prepare for their July policy meeting. Recent economic readings have sent mixed signals, leaving policymakers with a more complicated picture of inflation and the labor market.

The central bank has been trying to balance its fight against inflation with signs that growth and hiring are cooling in some parts of the economy. That tension is pushing officials toward a more careful approach, rather than committing to a rapid change in policy direction.

According to the Reuters report, policymakers are likely to keep monitoring incoming data closely in the weeks ahead. Their next decision will hinge on whether price pressures continue to ease and whether labor conditions remain resilient enough to support the broader economy.

For households and businesses, the Fed’s cautious tone suggests that borrowing costs may stay elevated for now while officials wait for clearer evidence. Investors will also be watching the July meeting for any shift in guidance on the path forward.