, according to data released Wednesday morning; in a statement explaining its decision, the Fed wrote that “Inflation has eased over the past year but remains elevated,” citing “modest further progress toward the Committee’s 2 percent inflation objective.”Coverage was common across the spectrum. Business outlets usually highlighted the contrast between the Fed’s decision on future rate cuts and investors’ hopes for more rate cuts.
New quarterly economic projections laid out after the meeting show that a majority of Fed officials who participated expect rates to fall to just 5.1% by the end of 2024, suggesting there will only be one quarter-point rate cut this year – a sharp reversal from the three they had predicted in March.The Federal Reserve on Wednesday kept its key interest rate unchanged and signaled that just one cut is expected before the end of the year.
With markets hoping for a more accommodative central bank, Federal Open Market Committee policymakers following their two-day meeting took two rate reductions off the table from the three indicated in March. The committee also signaled that it believes the long-run interest rate is higher than previously indicated.