US Federal Reserve rate pauses rate hike, sees tighter policy for year

The US Federal Reserve decided to keep interest rates unchanged but adopted a more hawkish stance. They anticipate an additional rate increase by the end of the year, maintaining a benchmark overnight interest rate peaking in the 5.5-5.75% range, just a quarter of a percentage point above the current range. However, their updated projections show rates falling only half a percentage point in 2024 compared to previous expectations.