Fed Pivots to Rate Cuts as Inflation Heads Toward 2% Goal
- Central bank leaves rates unchanged for third meeting
- Powell says officials discussed prospect of easing policy
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The Federal Reserve held interest rates steady for a third meeting and gave its clearest signal yet that its aggressive hiking campaign is finished by forecasting a series of cuts next year.
Officials decided unanimously to leave the target range for the benchmark federal funds rate at 5.25% to 5.5%, the highest since 2001. Policymakers penciled in no further interest-rate hikes in their projections for the first time since March 2021, based on the median estimate.