U.S. Federal Reserve officials said Wednesday that inflation has fallen further toward their target in recent months, but signalled that they expect to cut their benchmark interest rate just once this year.
Announcement came following Wednesday’s inflation numbers, which eased in May
U.S. Federal Reserve officials said Wednesday that inflation has fallen further toward their target in recent months, but signalled that they expect to cut their benchmark interest rate just once this year.
The policymakers’ forecast for one rate cut was down from a previous forecast of three, likely because inflation remains persistently elevated.
In a statement issued after its two-day meeting, the Fed said that the economy is growing at a solid pace while hiring has “remained strong.”
The Fed also said that in recent months there has been “modest further progress” toward its two per cent inflation target. It’s a more positive assessment than after its previous meeting May 1, when officials said there had been “a lack of further progress” on inflation.
More to come.