Fed Expected to Hold Rates Steady, But 2024 Cuts Possible If Inflation Keeps Cooling
• The Fed is expected to keep interest rates unchanged at 5.25%-5.50% at this week's meeting, the third consecutive on-hold decision.
• Markets anticipate potential rate cuts in 2024, but Fed officials have signaled rates will remain higher for longer to combat still-high inflation.
• The Fed's latest projections point to 2 rate cuts in 2024, putting rates at 5.1% by year-end.
•Inflation has eased from mid-2022 highs but still remains above the Fed's 2% target.
• The dot plot and Fed Chair Powell's tone will influence whether markets bet on rate cuts or accept higher for longer rates.