US interest rates are to be cut just once this year, according to updated forecasts from its central bank.
The cost of US borrowing was kept at a more than 20-year high despite news on Wednesday that inflation, the rate of price rises, fell to the lowest level in more than three years at 3.4%
The Federal Reserve published new guidance from its interest rate-setting committee, which expects just one rate cut this year. Just three months ago, three cuts were anticipated.
More evidence of falling inflation is needed before cuts come, the Fed said, as unemployment remained low.
That could change and rates could be brought down if unemployment quickly ticks up, Fed chair Jerome Powell said.