Fed Expected to Hold Rates Steady Amid Mixed Economic Signals

Policymakers likely to reduce projected rate cuts as inflation remains stubborn and labor market shows resilience.

Economists are divided on whether the Fed will signal one or two rate cuts this year.
Recent data show persistent inflation and robust job growth, complicating the Fed's decision-making.
The Fed's updated projections are expected to indicate a slower pace of rate cuts compared to earlier forecasts.
Chair Jerome Powell emphasizes that decisions will be based on economic data, not political pressures.
Investors will closely watch the Fed's June meeting for hints on the timing of the first rate cut.