Reported about 1 year ago
U.S. Federal Reserve policymakers have revised their economic projections, now expecting just one interest rate cut during 2024 and four more cuts in 2025, leading to a policy rate of 4.1% by the end of the latter year. This adjustment comes as inflation has been slower to reach their 2% goal, with stronger-than-expected inflation earlier in the year prompting a recalibration of rate cut expectations. The Fed aims to manage inflation while minimizing the impact on the job market, with some policymakers now foreseeing a slightly higher inflation rate of 2.6% by the fourth quarter of 2024, compared to the previous projection of 2.4%. Additionally, core PCE inflation is predicted to be at 2.8% in the fourth quarter of 2024 and 2.3% in the same period of 2025.
Source: YAHOO