At Extreme Investor Network, we understand that staying informed about the latest updates from the Federal Reserve is crucial for making informed investment decisions. Recently, Federal Reserve Bank Chair Jerome Powell announced that interest rates will remain unchanged for the remainder of 2024. This news came after the Fed projected only one rate cut for the year, down from their previous forecast of three reductions.
The central bank’s “terminal rate” for 2024 is now set at 5.1%, equivalent to a target range of 5%-5.25%. This means that the Fed is only forecasting one quarter-point rate cut from the current target range of 5.25% to 5.5%. The “dot plot,” which reveals the predictions of 19 FOMC members, showed that four officials are in favor of no cuts this year, seven members projected one reduction, and eight officials forecast two rate cuts for 2024.
Looking back to March, the Fed had initially projected three rate cuts for the year, with the fed funds rate hitting 4.6%. However, after a recent cool inflation report, traders were pricing in two cuts for 2024. Looking ahead to 2025, the central bank anticipates a total of four rate cuts, resulting in a full percentage point reduction in the benchmark fed funds rate.
This latest update from the Federal Reserve showcases the importance of staying up-to-date with economic indicators and central bank policies when navigating the world of investments. At Extreme Investor Network, we provide valuable insights and analysis to help our readers make informed decisions and stay ahead of the curve in the ever-changing financial landscape. Stay tuned for more updates and expert analysis on all things finance and investing.