Fed Stays on Track for Rate Cuts With One Eye on Bumpy Inflation
- Fed officials narrowly signal three rate cuts for 2024
- Broader picture of gradual, bumpy disinflation remains intact
Jerome Powell during a news conference following a FOMC meeting in Washington, on March 20.
Photographer: Al Drago/BloombergFederal Reserve policymakers are largely sticking to their path of interest-rate cuts — for now — after hitting a bump on the road to low and steady inflation.
The recent pickup in monthly inflation didn’t sway Fed Chair Jerome Powell’s message Wednesday that price pressures will continue to ease or that it will likely be appropriate to lower rates at some point this year. And a narrow majority of US central bank officials signaled they still expect to cut rates three times in 2024.