Federal Reserve still foresees 3 interest rate cuts this year despite bump in inflation

WASHINGTON (AP) — Federal Reserve officials signaled Wednesday that they still expect to cut their key interest rate three times in 2024, fueling a rally on Wall Street, despite signs that inflation remained elevated at the start of the year.

For now, the officials kept their benchmark rate unchanged for a fifth straight time.

Speaking at a news conference, Chair Jerome Powell said the surprising pickup in inflation in January and February hadn't fundamentally changed the Fed's picture of the economy: The central bank still expects inflation to continue to cool, though more gradually than it t...

 

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