The Fed has kept interest rates steady at their highest level in over 23 years. However, they indicated that they may begin lowering rates by June due to the economy still growing and inflation starting to ease. This change in outlook is a result of higher-than-expected inflation data at the start of 2023. The Fed's projections show a likelihood of three quarter-percentage point cuts in 2023 and possibly more in subsequent years.
The Federal Open Market Committee has released its latest statement comparing its previous meeting in January with its recent gathering on Wednesday. Notably, the new statement acknowledges the "ongoing impact of the COVID-19 pandemic" and signals a more cautious stance compared to January.
