Federal Reserve keeps interest rates on hold, predicts three cuts next year

The Federal Reserve kept its key interest rate unchanged Wednesday for a third straight time, a sign that it is likely done raising rates after having imposed the fastest string of increases in four decades to fight painfully high inflation. The Fed’s policymakers also signalled that they expect to make three quarter-point cuts to their benchmark interest rate next year, fewer than the five envisioned by financial markets and some economists. The relatively few number of rate cuts forecast for 2024 — which may not begin until the second half of the year — suggest that the officials think high borrowing rates will still be needed…