The U.S. Federal Reserve left benchmark interest rates unchanged but signaled that it could deliver two rate cuts as inflation continues to ease. The update came in the central bank’s latest policy statement and projections, which suggested policymakers see less price pressure ahead than they did earlier this year.

The decision reflects a cautious approach from the Fed as it balances progress on inflation against the risk of moving too quickly. Officials have been watching whether price growth continues to slow enough to justify lower borrowing costs without undermining the broader economy.

The so-called dot plot, which tracks policymakers’ expectations for future rate moves, showed a path that could include cuts if current trends hold. While the Fed did not change rates at this meeting, the message pointed to a gradually softer policy stance if inflation data remains favorable.

Markets will now focus on upcoming economic reports for clues on when the central bank may begin easing. Any shift in rates could affect consumer loans, mortgages, business borrowing, and the broader pace of U.S. growth.