Federal Reserve officials revealed on Wednesday that inflation has moved closer to their target level in recent months. However, they indicated that they expect to cut their benchmark interest rate only once this year. This forecast is down from their previous projection of three rate cuts, due to inflation persistently remaining above their target level. The policymakers kept their key rate unchanged at 5.3%. The Fed Chair stated that inflation remains too high and that the central bank’s focus remains on returning the gauge to its 2% target.
