U.S. Federal Reserve Holds Interest Rates Steady

Federal Reserve officials predict only one interest rate cut this year, after previously indicating the possibility of three cuts in March estimates, as the inflation rate approaches the two percent target more slowly than expected. These estimates were included in the updated economic projections released by the Federal Reserve on Wednesday at the end of its meeting that took place over the past two days. The Fed kept the interest rate unchanged in the range of 5.25 percent to 5.5 percent, as anticipated. Policymakers expect the interest rate to average 4.1 percent by the end of next year, indicating four additional cuts of a quarter percentage point each in 2025.