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Federal Reserve officials announce pause in US interest-rate hikes

Fed officials project more 2023 rate rises, amid hope inflation will still cool

U.S. Federal Reserve officials penciled in additional rate rises for this year and said they foresee inflation pressures continuing to ease over the next few years, in updated forecasts released on Wednesday. The projections, released quarterly, came as part of a Federal Open Market Committee meeting that saw policymakers hold their interest rate target range steady at between 5% and 5.25%, bypassing an increase for the first time since they kicked off their aggressive rate rise campaign in March 2022. Officials now expect the fed funds rate to top out at 5.6% this year, implying two more 25 basis point increases in 2023, up from the 5.1% they projected in the last set of forecasts released in March.

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