The Fed anticipates reducing interest rates by an additional half percentage point before the end of the year.

The Federal Reserve is expected to lower interest rates by another half point before the end of 2024, with two more policy meetings remaining.

According to the "dot plot," 19 FOMC members, including both voters and nonvoters, predict that the benchmark fed funds rate will be 4.4% by the end of this year, which corresponds to a target range of 4.25% to 4.5%. The Fed has two upcoming meetings scheduled for November 6-7 and December 17-18.

The central bank predicts that interest rates will reach 3.4% by 2025, representing a full percentage point decrease. By 2026, rates are anticipated to fall to 2.9%, with an additional half-point reduction.

"Fed Chairman Jerome Powell stated in a press conference that the SEP does not indicate that the committee is in a hurry to complete the task. He added, "This process develops gradually.""

On Wednesday, the central bank reduced the federal funds rate to a range of 4.75%-5%, marking its first rate cut since the start of the Covid pandemic.

Here are the Fed's latest targets:

The committee believes that inflation is moving towards 2% sustainably and that the risks to achieving its employment and inflation goals are roughly balanced, according to the post-meeting statement.

The unemployment rate projection for this year was raised by Fed officials from 4% to 4.4% in the latest update.

The inflation outlook was lowered to 2.3% from 2.6%, while the committee reduced its projection for core inflation by 0.2 percentage points to 2.6%.

— CNBC's Jeff Cox contributed reporting.