Fed Expected to Leave Rates Unchanged, But Cuts Forecast for Later 2024 as Inflation Cools and Economy Stabilizes
• The Fed is holding its first meeting of 2024 on Jan 30-31 and is expected to leave interest rates unchanged • Economists predict the first rate cut will happen at the March or April meeting, with additional cuts later in 2024 • Inflation is cooling, with the latest reading showing prices rose 2.9% annually in December excluding food and energy • Even though rates are steady, mortgage rates have already dropped over 1% since late 2023 due to anticipation of Fed cuts • While consumer views on the economy are improving, 60% say recent price hikes have caused financial hardship for their families