US Fed indicates one interest rate cut before year-end

US Federal Reserve officials said on Wednesday that they expect just one rate cut before the end of the year, taking a cautious stance on inflation as they held borrowing costs at a 23-year high.

The Fed did not specify certain cut in interest rates. Instead, it targets a range of interest rates through what is known as the federal funds rate. The US central bank is targeting a range between 5.25-5.5 per cent, the highest level in 23 years. A 25-point cut would decrease the target range to between 5-5.25 per cent.

In a widely expected move, the Fed policymakers decided to leave rates unchanged in a range of 5.25 to 5.5 percent, where they have been since July 2023.