The Federal Reserve is expected to maintain the benchmark federal funds rate at around 5.3 during their meeting due to higher-than-expected inflation in the first quarter. Rate cuts are likely to be postponed, and officials may stress their willingness to keep rates at a level that significantly restrains economic activity for a longer period. Fed Chair Jerome Powell is anticipated to discuss the recent inflation setback and its effect on the interest-rate outlook, with the possibility of either a "bumpier" path to 2 inflation or inflation settling near 3, which could eliminate the possibility of rate cuts.