Posted 1/31/2024, 8:37:09 PM
Fed Holds Rates Steady But Opens Door to Possible Cuts Later This Year
- Fed held interest rates steady but hinted a March rate cut is unlikely despite slowing inflation
- Fed removed reference to future rate hikes, signaling rate cuts could come but wants more data showing inflation is sustainably falling
- Fed upgraded economic outlook, noting solid growth, but doesn't expect rate cuts until confident inflation moving to 2% target
- Inflation down sharply to 2.6% in December from 7% last summer, but wage growth only fell slightly, signaling inflation pressures could persist
- Experts believe rate cuts coming but disagree on exact timing, with futures markets predicting as many as 6 cuts this year while Fed looks for more confirmation