Federal Reserve Predicts One Interest Rate Cut by End of 2024 Amid Inflation Concerns

During the June meeting on Wednesday, Federal Reserve officials decided to keep interest rates at the current level, signaling a cautious approach in addressing inflation concerns. The officials projected that there would be only one interest rate cut before the end of 2024, a significant shift from their previous estimate of three cuts this year.

The decision to maintain the current interest rates came as a surprise to many economists, who had anticipated a different outlook. In March, Fed officials had foreseen three interest rate cuts for the year, but the latest projection of just one cut caught many off guard. This change reflects the Fed's careful and conservative stance in response to persistent inflation challenges in early 2024.

Jerome H. Powell, the Fed chair, emphasized in a post-meeting news conference that the officials were approaching the situation with caution, considering the fluctuating inflation data in recent months.