US Federal Reserve holds interest rates, now sees just a cut this year

WASHINGTON—The US Federal Reserve left its key lending rate unchanged on Wednesday and penciled in just one rate cut this year, down from the three expected in March after inflation stalled in the first quarter.

The annual consumer price index came in at 3.3 percent last month, down 0.1 percentage point from April and unchanged on a monthly basis, the Labor Department said. This was slightly below expectations. The surprise of the day came in the Fed’s updated economic forecasts from the 19 members of its rate-setting Federal Open Market Committee .

The announcement caught some analysts by surprise, while others suggested the Fed would have to backtrack in the months ahead. “It will be a close call between one or two 25 bps rate cuts this year,” Wells Fargo economists wrote in an investor note, adding that their forecast remained for two cuts this year.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Federal Reserve likely to scale back plans for rate cuts because of persistent inflation | Christopher RugaberWASHINGTON—Federal Reserve officials on Wednesday will likely make official what’s been clear for many weeks: With inflation sticking at a level above their 2 percent target, they are downgrading their outlook for interest rate cuts.
Source: BusinessMirror - 🏆 19. / 59 Read more »