“The committee judges that the risks to achieving its employment and inflation goals are moving into better balance,” the central bank’s policy-making Federal Open Market Committee said Wednesday.
Federal Reserve officials maintained their outlook for three quarter-point rate cuts this year but forecast fewer cuts than before in 2025 following a recent uptick in inflation.
Officials decided unanimously to leave the benchmark federal funds rate in a range of 5.25% to 5.5%, the highest since 2001, for a fifth straight meeting. Policymakers signalled they remain on track to cut rates this year for the first time since March 2020, but they now see just three reductions in 2025, down from four forecasts in December, based on the median projection.
