MARCH 25, 2024 – THE FED MEETS, ANTICIPATES THREE RATE CUTS IN 2024
The Federal Reserve had their regularly scheduled meeting last week. As expected, they chose to leave interest rates unchanged, and said interest rates will come down later this year as inflation cools. The Fed remains wary about rebound inflation and until inflation seems to be tamed, rates will not move.
The Fed released amended quarterly economic estimates which show rates falling to 4.6 percent by year end. That translates to three 0.25 percent rate cuts by the end of 2024. The Fed’s goal is not to put a damper on the economy for too long, but they want to make sure rates remain high long enough to keep inflation close to the 2 percent target. Fed Chair Powell avoided saying how early in the year rate cuts could start. Many economists expect the first rate cut to take place in June.
The Fed mentioned rates may be cut less in 2025 than originally indicated. The dot-plot for 2025 shows most of the Fed members anticipate rates to hover around 4 percent by the end of next year.