Federal Reserve sees some progress on inflation but envisions just one rate cut this year

Inflation News

Federal Reserve sees some progress on inflation but envisions just one rate cut this year
FedRate CutsEconomy
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Federal Reserve officials said Wednesday that inflation has fallen further toward their target level in recent months but signaled that they expect to cut their

FILE - A screen displays a news conference with Fed eral Reserve Chairman Jerome Powell on the floor at the New York Stock Exchange in New York, May 1, 2024. On Wednesday, June 12, 2024, the Fed eral Reserve ends its latest meeting by issuing a policy statement, updating its economic and interest-rate projections and holding a news conference with Powell.

In a statement issued after its two-day meeting, the Fed said the economy is growing at a solid pace, while hiring has "remained strong." The officials also noted that in recent months there has been "modest" further progress toward its 2% inflation target. That is a more positive assessment than after the Fed's previous meeting May 1, when the officials had noted a lack of progress.

The Fed's updated quarterly projections are by no means fixed in time. The policymakers frequently revise their plans for rate cuts — or hikes — depending on how economic growth and inflation evolve over time.

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