Fed holds rates steady, signals one cut this year

Key facts

• The Federal Reserve maintained its target range for the federal funds rate at 5.25%-5.50%.
• Officials now anticipate a single quarter-point rate cut by the end of 2024.
• The Fed's median forecast for inflation (PCE) was raised to 2.6% from 2.4% for 2024.
• The median forecast for economic growth (GDP) was lowered to 2.1% from 2.2% for 2024.

The Federal Reserve's decision to hold rates steady and signal fewer cuts than previously expected reflects ongoing concerns about inflation. This move impacts borrowing costs across the economy, influencing everything from mortgages to business investment, and signals a more cautious approach to monetary easing.