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

By Christopher Rugaber | The Associated Press WASHINGTON (AP) — 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 benchmark interest rate just once this year. The policymakers’ forecast for one rate cut was down from a previous forecast of three, because inflation, despite having cooled in the past two months, remains persistently elevated. 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 their 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. Still, the central bank made clear Wednesday that further improvement is needed. “We’ll need to see more good data to bolster our confidence that inflation is moving sustainably toward 2%,” Chair Jerome Powell said at a news conference after the Fed meeting ended. The policymakers, as expected, kept their key rate unchanged at roughly 5.3%. The benchmark rate has remained at that level since...