Federal Reserve sees some progress on inflation but envisions just one rate cut this year

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve officials said inflation has fallen further toward their target level in recent months but signaled 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, likely because inflation, despite having cooled in the past two months, remains persistently elevated. The Fed said the economy is growing at a solid pace while hiring has “remained strong.” The officials also noted that in recent months there has been “modest further progress” toward its 2% inflation target. That is a more positive assessment than after the Fed’s previous meeting.