Fed remains cautious on rate cuts due to ongoing inflation pressures from the pandemic

The Federal Reserve in Washington is thinking about lowering interest rates this year to help the economy. But now, they are not so sure about it. They want to keep borrowing money expensive to stop prices from going up too much. The prices for things like renting apartments, car insurance, and hospital visits are still high because of the pandemic. The Federal Reserve wants to wait and see if these prices will go down on their own. They are worried about keeping prices under control without hurting jobs. Inflation, which means prices going up, was at 7.1% in June 2022 but went down to 2.7% in March. Economists think it might go up to 2.7% again in April. A few months ago, people thought the Federal Reserve would lower interest rates in March. But now, they need more time to understand what's happening with prices. They are watching to see if the economy slows down. The pandemic made some prices go up, like renting apartments. Even though the pandemic is mostly over, these prices are still high. People are paying more for car insurance because companies have to pay more to replace cars. The Federal Reserve is waiting to see if these high prices will go down soon.