Policy rate expected to remain in 5.255.50 range
Analysts see Fed scaling back projected 2024 rate cuts
Start of policy easing hinges on inflation data

WASHINGTON, June 12 Reuters The Federal Reserve is expected to leave interest rates unchanged on Wednesday, with new economic projections from the U.S. central bank39;s policymakers likely to show fewer rate cuts this year and a delayed start to monetary policy easing.

Fed officials will receive a new round of inflation data that could shape their outlook just hours before they conclude their latest twoday meeting and release a fresh policy statement and updated quarterly projections.

But with the Fed39;s efforts to lower inflation to its 2 target showing only modest improvement this year through April and strong job growth allaying concerns of a weakening economy, analysts expect the central bank to maintain its norush attitude towards rate cuts, leaving the benchmark policy rate in the 5.255.50 range that was set last July.

Given that inflation remains above target and activity remains robust, the Fed can exercise patience in determining when it would next adjust its policy rate, Bank of America economists wrote about a meeting they felt would see little change to the central bank39;s policy statement or in the guidance Fed Chair Jerome Powell offers in his postmeeting press conference.

The statement is due to be released at 2 p.m. EDT 1800 GMT, with Powell speaking to reporters half an hour later.

Given the…