In late March, the Federal Reserve said it would leave the federal funds rate at a 23-year high, but it also signaled expectations to cut rates three times this year. The central bank wants to be confident inflation is moving sustainably lower toward its 2% annual growth target rather than prematurely lowering interest rates.
Recent economic data shows inflation remains uncomfortably high, but the market is still anticipating one to two quarter-point rate cuts will happen this year.
