Federal Reserve signals rate cuts next year

The US central bank left interest rates unchanged as it said it remained committed to fighting inflation.

But members of the Federal Reserve gave the strongest sign yet that they expect to start cutting rates next year.

Projections released after the bank's meeting showed they expect its key interest rate to stand at 4.6% next year, more than half a percentage point lower than the current rate.

The Fed's rate remains at 5.25%-5.5%, the highest level in 22 years.

Markets surged on signs the central bank could reduce rates in 2024.

The Fed has sharply raised interest rates since the start of 2022 in a bid to cool the economy and slow price rises.