Federal reserve officials signaled they still expect to cut their key interest rate three times this year despite signs that inflation was surprisingly high at the start of the year. Yet they foresee fewer rate cuts in 2025, and they slightly raised their inflation forecasts. Retired Ripon College economist Paul Schoofs says the policymakers forecast that stronger growth and inflation above their two percent target level would persist into next year. Chair Jerome Powell noted that inflation has cooled considerably from its peak, but added it’s still too high. Powell said ongoing progress in bringing it down is not assured and the path forward is uncertain.
