Federal Reserve officials said Wednesday that inflation has fallen further toward their target level in recent months but signaled that they expect to cut their benchmark interest rate just once this year, according to the Associated Press.
The policymakers’ forecast for one rate cut was down from a previous forecast of three because inflation, despite having cooled in the past two months, remains persistently elevated.
In a statement issued after its two-day meeting, the Fed said the economy is growing at a solid pace, while hiring has “remained strong.” The officials also noted that in recent months there has been “modest” further progress toward its 2% inflation target. Still, the central bank made clear that further improvement is needed and, as expected, kept its key rate unchanged at roughly 5.3%.
