Investing.com — The Federal Reserve kept interest rates unchanged on Wednesday, but signaled fewer rate cuts for this year than previously expected to ensure that monetary policy remains restrictive enough to keep the pressure on inflation.

The Federal Open Market Committee, the FOMC, kept its in a range of 5.25% to 5.5%.

While the unchanged decision, the eighth in a row, was largely expected, Fed members now believe that fewer rate cuts are needed this year as the economy growth persists, while inflation remains somewhat sticky.

“Inflation has eased over the past year but remains elevated,” the Fed said on Wednesday.

Fed members now see the benchmark rate falling to 5.1% this year, suggesting just one rate cut in 2024, compared with a prior estimate for three cuts.

The fresh projections arrived on the heels of the data showing that consumer inflation slowed more than expected, easing worries about whether monetary policy was tight enough to push inflation toward the 2% target.