Expected Fed Rate Cuts 2024. Washington (ap) — federal reserve officials signaled wednesday that they still expect to cut their key interest rate three times. The fed cuts rates “when something goes wrong.
That would leave rates sitting at about 4.6. In wednesday’s updated estimates, most officials now expect the fed’s key interest rate to end up somewhere between 4.88% and 5.62% in 2024, versus topping.
The fed is forecast to begin a significant easing cycle in q224 (markets are more aggressive relative to econ consensus), delivering 100bp cuts in 2024, another.
Rate cuts will exceed 75 basis points as the jobless rate surpasses 5%, the firm says.
Investors can lock in cd rates now, while bonds are poised for a pop.
The federal reserve is expected to ultimately cut interest rates in 2024, but in a measured way and with action weighted toward the second half.
