Fed Rate Cut Hopes Fade for 2024 as Economy Defies Slowdown, Keeping Rates Higher

• Expectations for Fed interest rate cuts in 2024 are being pushed back as the economy remains strong and some measures of inflation are rising • Some economists now think the Fed won't cut rates at all in 2024 and rates will stay higher for longer • Food prices and other inflationary pressures on consumers remain high • Stronger 2024 growth forecasts undermine Fed efforts to cut rates as a stronger economy can accelerate inflation • Investors are still divided on rate cut expectations in 2024, but the Fed sees fighting inflation as a priority over cuts