Fed expects to keep rates higher longer

Fed officials will hold their benchmark federal-funds rate steady at around 5.3%—its highest level in more than two decades—at their two-day policy meeting that begins Tuesday, the Wall Street Journal reports. 

Inflation remaining higher than expected at the start of the year has likely postponed the expected rate cuts for the foreseeable future. With no new economic projections at this meeting and minimal changes expected to the Fed’s policy statement, Fed Chair Jerome Powell is expected to acknowledge on Wednesday that officials have less conviction on when or how they would lower rates. 

He’s also expected to comment on the inflation setback, rate policy and the Fed’s balance sheet. 

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