FED LIKELY TO HOLD RATES STEADY AND PROJECT FEWER CUTS IN 2024
The Federal Reserve is expected to leave interest rates unchanged on Wednesday, with new economic projections from the U.S. central bank's policymakers likely to show fewer rate cuts this year than previously anticipated. Fed officials received some welcome news on inflation as they continued their two days of deliberations when the Bureau of Labor Statistics announced that the consumer price index was flat on a month-to-month basis in May, and the annual pace of price increases slowed to 3.3% from 3.4% in the month before.
Excluding volatile food and energy costs, the core index slowed to 3.4% last month from 3.6% in April. The Fed's efforts to lower inflation to its 2% target had shown only modest improvement this year through April, and policymakers have been reluctant to put much weight on individual data points.
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