Fed Expected to Cut Rates Once in 2024

New York, NY, June 13, 2024-"Federal Reserve officials penciled in just one interest-rate cut for this year, indicating most are in no hurry to lower rates, even after a widely watched report Wednesday showed inflation improved last month,” reports the Wall Street Journal.

“The central bank also held its benchmark rate steady, in a range between 5.25% and 5.5%, a move that was widely expected.

“New economic projections showed 15 of 19 officials expect the Fed will reduce rates this year, with that group roughly split between one or two rate cuts. The median, or midpoint, of those projections reflected expectations of one reduction.

“Fed officials meet four more times this year, in July, September, November and December, and the rate projections tempered investors’ expectations of a September cut. Those expectations rose earlier Wednesday after the inflation report.

“After setbacks at the start of the year, more recent inflation readings have shown improvement, Fed Chair Jerome Powell said at a news conference. ‘We’ve made pretty good progress on inflation,’ he said. Wednesday’s report was ‘a step in the right direction … but you don’t want to be too motivated by any single data point.’

In order to cut rates, ‘we’ll need to see more good data,’ he said.”