Discover if the Fed Still Anticipates 3 Rate Cuts in 2024
2 min read
Shiv Telegram Media: Federal Reserve Officials to Signal Stance on Interest Rate Cuts for 2024
As the markets brace themselves for news from the Federal Reserve, investors are eagerly awaiting the upcoming release of the central bank’s new projection on interest rate cuts for 2024. This update will come in the form of a “dot plot,” which will reveal each Fed official’s prediction of the direction of the federal funds rate.
The consensus for three rate cuts in 2024 is now in question, with higher-than-expected inflation readings and cautious commentary from the Fed causing some uncertainty. Investors have adjusted their expectations accordingly, now predicting three cuts to start in June, a change from the previous expectation of six cuts beginning in March.
Former Fed officials Esther George and Jim Bullard are not anticipating significant changes in predictions this week. Bullard, in particular, believes that there is already enough data to support rate cuts, pointing to the core Personal Consumption Expenditures index.
While some experts suggest that the Fed may wait until late summer to start cutting rates in order to achieve sustainable 2% inflation, others argue that zero cuts are now a possibility for 2024. Fed Chair Jay Powell and his colleagues are closely monitoring specific components of inflation before making any decisions.
Powell has indicated that the Fed is approaching a level of confidence that may lead to rate cuts later this year or in the summer. However, some market observers are urging the Fed to wait past June before taking any action.
Overall, the upcoming announcement from the Federal Reserve is expected to have a significant impact on the markets, as investors eagerly await clarity on the central bank’s stance on interest rate cuts for the remainder of 2024. Stay tuned to Shiv Telegram Media for the latest updates on this developing story.
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