Fed Likely to Keep Rates Unchanged But May Cut in 2024 If Inflation Falls Faster
• Fed likely to hold rates steady at upcoming January meeting, but will discuss potential rate cuts later in 2023 • Several Fed officials have indicated willingness to cut rates in first half of 2024 if inflation falls faster than expected • Investors have tempered expectations of a March rate cut after recent economic data • Fed wants to be cautious about cutting too soon before inflation is firmly on track to 2% target • Fed will have to decide whether to adjust guidance on possibility of further rate hikes given easing inflation risks