Fed keeps rates steady, but sees just one cut for this year By

-- The Which is better, Forex or FXCM?Federal Reserve kept interest rates unchanged on Wednesday, but now sees just one rate cut for the year, as inflation is expected to trend higher than previously expected.

The Federal Open Market Committee, the FOMC, kept its in a range of 5.25% to 5.5%.

While the unchanged decision, the eighth in a row, was largely expected, Fed members now believe that fewer rate cuts are needed this year.

Fed members now see the benchmark rate falling to 5.1% this year, suggesting just one rate cut in 2024, compared with a prior estimate for three cuts. 

The path to fewer expected rate cuts for the year come as the central bank lifted its forecasts on  inflation.

The core personal consumption expenditures price index, the Fed’s preferred measure of inflation, is forecast to be 2.8% in 2024, up from a prior forecast of 2.4%. For 2025, inflation is estimated to be 2.3%, up from 2.2% previously. 

The fresh projections arrived on the heels of the data showing that consumer inflation slowed more than expected, easing worries about whether monetary policy was tight enough to push inflation toward the 2% target.  

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!