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Federal Reserve officials say inflation has dropped closer to their objective in recent months but anticipate cutting their benchmark interest rate once this year.
According to current central bank predictions, US interest rates will be slashed once this year.
US borrowing costs remained at a more than 20-year high despite Wednesday’s 3.4% inflation, the lowest in more than three years.
New advice from the Federal Reserve’s interest rate-setting committee predicts one rate drop this year. Three months ago, three cuts were expected.
The Fed said it needs more signs of lowering inflation before cutting rates, as unemployment remains low.
Fed chair Jerome Powell indicated rates may fall if unemployment rose quickly.
Central banks worldwide have raised rates to lower inflation, which rose amid pandemic-era supply chain issues and Russia’s invasion of Ukraine’s energy price shock.
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