The Globe and Mail reports in its Wednesday, Feb. 12, edition that the U.S. Federal Reserve is prepared to keep its key interest rate unchanged for now as inflation remains elevated and the job market is solid, chairman Jerome Powell said Tuesday. An Associated Press dispatch to The Globe reports that last week, comments by many Fed officials -- as well as a decline in the unemployment rate -- suggested the odds of a rate cut any time soon have dwindled. At their December meeting, Fed officials indicated that they anticipated two rate cuts this year. However, economists and Wall Street investors are becoming increasingly doubtful, with some predicting that there may be no reductions at all. On Friday, economists at Morgan Stanley revised their outlook, now expecting just one rate cut in 2025. Meanwhile, investors are also anticipating only one cut, projected for July according to futures market pricing. Fewer rate cuts could lead to a longer period of elevated mortgage rates and higher borrowing costs for items ranging from automobiles to credit cards. It is important to note that mortgage rates are closely linked to the yield on the 10-year Treasury note, which can fluctuate independently of the Fed's decisions.