Posted 12/21/2023, 1:01:53 PM
Fed Forecasts Slowing Inflation, Small Rate Cuts Despite Economic Turbulence in 2024
- The U.S. economy is forecasted to have declining inflation, interest rate cuts, and slightly higher unemployment in 2024.
- The Fed plans to make small interest rate cuts in 2024 and expects inflation to fall to 2% by 2026.
- Financial markets are optimistic about a "soft landing" for the economy, but consumers are still feeling economic pain.
- Inflation has declined from highs of 9.1% in June 2022 but is still above the Fed's 2% target.
- Supply chain problems and corporate profiteering, not excess demand, were the main drivers of inflation according to some experts.