The US Federal Reserve held interest rates steady at 3.5-3.75% despite higher inflation projections, steady unemployment, and a single rate cut for the year.
New projections from U.S. central bank policymakers showed the Fed's benchmark overnight interest rate would fall by just a quarter of a percentage point by the end of this year, with no hint of the timing of such a move.
Inflation, as measured by the Fed's preferred gauge, was expected to end the year at 2.7%, not far below its current rate and higher than the 2.4% projected in December.
The Fed's decision to hold the policy rate steady was widely expected in financial markets, but the projections provide fresh information about how the U.S. central bank is assessing the economic impact of a war that has disrupted global oil markets.
