Fed rate hikes to slow inflation push back forecast for cooling economy

The Federal Reserve began raising interest rates in March 2022 to fight high inflation, with 11 hikes so far. This has pushed up mortgage and credit card rates.

After January's hotter-than-expected inflation report, economists now say the Fed's first rate cut will likely happen later in 2024 than previously forecast.

Most economists had predicted a rate cut in March, but now only 1 in 10 still forecast that after the latest inflation data.

About a third of economists predict the Fed's first 2024 rate cut will come at its May meeting, down from 90% earlier this year.

With delayed rate cut forecasts, consumers are unlikely to see relief on auto loans, credit cards and other rates tied to the Fed's benchmark until at least mid-2024.