Fed Holds Rates Steady But Still Plans 3 Cuts in 2024 Despite High Inflation

Federal Reserve officials signaled they still expect to cut interest rates 3 times in 2024 despite high inflation early this year.

Fed kept benchmark rate unchanged but raised inflation forecasts slightly and lowered 2025 rate cut projections to 3 from 4.

Powell said inflation has cooled from peak but is still too high, path forward uncertain, risks of easing too much or too late.

Traders sent stocks higher, relieved Fed still projects 3 rate cuts in 2024. Powell not alarmed by high inflation reports.

Most economists see June as likely time for first rate cut to reverse 11 hikes since 2020, cool economy and reduce high borrowing costs.