Federal Reserve sees some progress on inflation but envisions just one rate cut this year

WASHINGTON (AP) — Federal Reserve officials said inflation has fallen further toward their target level in recent months but signaled that they expect to cut their benchmark interest rate just once this year. The policymakers’ forecast for one rate cut was down from their previous projection of three cuts, because inflation, despite having cooled in the past two months, remains persistently above their target level. The scaled-back estimate for rate cuts came as something of a surprise, given that the government reported that inflation slowed in May more than most economists had expected. Financial markets took encouragement, though, from the statement the Fed issued after its latest meeting, which underscored that it sees progress in its fight against high inflation.