Federal Reserve still foresees three rate cuts this year

Federal Reserve officials signaled Wednesday that they still expect to cut their key interest rate three times in 2024 despite signs that inflation was surprisingly high at the start of the year. Yet they foresee fewer rate cuts in 2025, and they slightly raised their inflation forecasts.

After ending their latest meeting, the officials kept their benchmark rate unchanged for a fifth straight time.

In new quarterly projections, the policymakers forecast that stronger growth and inflation above their 2% target level would persist into next year.