Fed's interest rate resolution will be revealed at 18h:00 June 12 (UTC) 🚨
According to a survey by financial data firm FactSet, nearly all economists predict that monetary policymakers will keep the federal funds rate steady in the range of 5.25% to 5.5%. This rate, the highest in 23 years, has remained unchanged since the Federal Reserve's July 2023 meeting.
Despite this anticipated stability, both consumers and investors will be keenly attentive to any hints about the Fed's future rate outlook. These clues can significantly influence economic expectations and financial decisions moving forward.
Anticipated Fed Rate Cuts: What to Expect in 2024?
The question on many minds is when the Federal Reserve will begin cutting rates. While most economists foresee rate cuts happening in 2024, they don't expect any changes at the June 12 meeting.
FactSet reports that approximately 90% of economists predict the Fed will also maintain steady rates at its July 31 meeting. The earliest potential for a rate cut could come at the September 18 meeting, with about half of the economists anticipating the first cut of the year at that time.
Despite these predictions, few economists believe the Fed will raise rates further, largely due to the steady decline in inflation from its peak of 9.1% in June 2022. As of April, consumer prices were increasing at an annual rate of 3.4%. The Fed's preferred inflation measure, the Personal Consumption Index, was up 2.7% from the previous year in April, reinforcing expectations of stable or lower rates moving forward.
Please monitor the makrets carefully!🎯