Federal Reserve sees progress on inflation but signals just one rate cut in 2024

Federal Reserve chairman Jerome Powell (AP)

The US Federal Reserve officials said that inflation has fallen further towards their target level in recent months but signalled that they expect to cut their benchmark interest rate just once this year.

The policymakers’ forecast for one rate cut was down from a previous forecast of three, probably because inflation, despite having cooled in the past two months, remains persistently elevated.