Fed keeps rates on hold, sees three cuts in 2024 _ REUTERS

Inflation has eased substantially, while the labor market has remained strong, and that is very good news. But inflation is still too high. The Federal Reserve held interest rates steady on Wednesday, with Chair Jerome Powell expressing some concern about economic conditions following the conclusion of a two-day meeting Wednesday. In a new statement, the Fed policymakers forecast inflation remaining closer to 3 percent, above its 2 percent target by the end of 2024. Nevertheless, a majority still expects three rate cuts this year. We believe that our policy rate is likely at its peak for this tightening cycle, and that if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year. Traders currently see a nearly 70 percent chance of the first cut coming at the June meeting, according to the CME FedWatch tool. Policymakers also upgraded their outlook for economic growth and expressed confidence in the labor market, though the focus remains on higher prices. The story is really essentially the same, and that is of inflation coming down gradually toward 2 percent on a sometimes bumpy path, as I mentioned. I think that's what you still see. The Fed's next meeting on interest rates takes place in May.