US Fed maintains rates steady, predicts single rate cut for the year amidst ongoing elevated inflation concerns

The US Federal Reserve kept interest rates steady at a 23-year high of 5.3% on Wednesday, pushing back the start of rate cuts to possibly as late as December this year. This decision comes despite official data showing that US inflation fell by more than expected last month. The Fed's March projections had predicted three quarter-percentage point interest rate cuts, but the latest outlook suggests a slower pace of rate reductions. According to the central bank's new policy statement, there has been "modest further progress" towards its 2% inflation target. The FOMC members' median economic projections indicate that the federal funds rate would be cut to 5.1% by the end of this year.