The Federal Reserve penciled in three interest rate cuts in 2024 after continuing its pause on rate hikes. Here’s what that could mean for you.
The nation’s central bank projected some financial relief for Americans in 2024.
On Wednesday, the Federal Open Market Committee announced it would be holding interest rates steady yet again in its final major decision of the year. It came on the heels of more data reflecting cooling inflation — the Consumer Price Index, which measures inflation, rose 3.1% year-over-year, down from October’s reading of 3.2%.
Alongside the FOMC’s announcement, the committee also released its Summary of Economic Projections, which outlines the Fed’s economic outlook based on current data. The committee projected three interest rate cuts in the coming year, with more expected in 2025 and 2026.
Those cuts aren’t guaranteed, however, and the central bank is still watching for even tamer inflation. « We still have a ways to go. No one is declaring victory, that would be premature, and we can’t be guaranteed of this progress. So we’re moving carefully in making that assessment of whether we need to do more or not, » Fed Chair Jerome Powell said during the Wednesday press conference.
