The central bank argues that inflation has declined

At its third meeting in December 2023, the Federal Reserve kept the federal funds rate at 5.25%-5.5%, which was in line with expectations, but indicated a 75 bps cut in 2024. 

Bloomberg writes about it.

Policy makers noted that recent indicators suggest that economic growth has slowed, job growth has slowed but remains high, and the unemployment rate remains low. 

Inflation has declined over the past year but remains high. The central bank also published new forecasts. GDP growth is expected to be higher this year (2.6% vs. 2.1% in the September forecast), but slightly lower in 2024 (1.4% vs. 1.5%). 

In addition, headline PPP (Purchasing power parity - Ed.) inflation was revised downward for both 2023 (2.8% vs. 3.3%) and 2024 (2.4% vs. 2.5%), as well as core PPP inflation, which is expected to reach 3.2% in 2023 (vs. 3.7%) and 2.4% (vs. 2.6%) next year. 

The projected unemployment rate remained stable at 3.8% in 2023 and 4.1% next year. The so-called dot plot showed that the median forecast for the federal funds rate at the end of 2024 fell to 4.6% from 5.1% in September.