From CNBC.:

The Federal Reserve decided to keep interest rates steady and hinted at multiple cuts in 2024. The current rate is between 5.25%-5.5%, the highest in over 23 years. Fed officials projected three quarter-point reductions by year-end, the first since the start of the Covid pandemic in 2020.

The Fed’s “dot plot” forecast three cuts in 2025, decreasing to two regularly until reaching around 2.6%. Economic projections showed increased GDP growth to 2.1% this year, with a core inflation target of 2.6%. The unemployment rate forecast moved slightly lower to 4%.

Fed Chair Powell emphasized a data-driven approach to future monetary policy decisions, indicating patience amid inflation concerns and economic growth. Markets expected the first rate cut to occur in June, aligning with the Fed’s cautious stance on policy adjustments.

No immediate changes were announced regarding the central bank’s balance sheet reduction program, known as quantitative tightening. The process, started in 2022, has resulted in a substantial drawdown of the Fed’s holdings. Further details may be revealed after the post-meeting news conference and release of meeting minutes.



Read more: Central bank holds rates steady, maintains three cuts coming