Federal Reserve is likely to scale back plans for rate cuts because of persistent inflation

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve officials on Wednesday will likely make official what’s been clear for many weeks: With inflation sticking at a level well above their 2% target, they are downgrading their outlook for interest rate cuts. In a set of quarterly economic forecasts they will issue after their latest meeting ends, the policymakers are expected to project that they will cut their benchmark rate just once or twice by year’s end, rather than the three times they had envisioned in March. The Fed’s rate policies typically have a significant impact on the costs of mortgages, auto loans, credit card rates and other forms of consumer and business borrowing.