Federal Reserve policymakers believe beating back inflation may require just one more interest-rate hike this year but less easing next year than most thought would be appropriate just three months ago.
U.S. central bankers see the policy rate, now in the 4.75%-5.00% range after Wednesday's 25-basis-point increase, at 5.1% by year end, according to the median estimate in the Fed's latest quarterly summary of economic projections.
Forecasts from the 18 policymakers were varied, however, with seven policymakers seeing a higher appropriate stopping point for rates. One policymaker thought no further rate hikes would be needed. In December Fed policymakers thought 2023 would end with the Fed policy rate at 5.1%, before dropping to 4.1% in 2024.
The personal consumption expenditures price index, the yardstick by which the Fed measures that progress, rose 5.4% in January from a year earlier.
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