The Federal Reserve held interest rates steady and signaled inflation had improved more rapidly than anticipated, opening the door to rate cuts next year, the Wall Street Journal reported. Most officials penciled in three interest rate cuts for 2024 in projections released after their two-day meeting on Wednesday. Officials have hesitated to declare mission accomplished and were careful not to rule out higher rates in their policy statement, which was little changed from recent versions that have said tighter policy remains possible. But another hike seems remote because inflation has declined much faster than officials anticipated this year. In their latest projections, they expected core prices, which exclude volatile food and energy items, to rise 3.2% this quarter from a year ago, down from their September projection of 3.7%. They see core inflation of 2.4% at the end of next year, down from their September expectation of 2.6%.
