Federal Reserve Bank Chairman Jerome Powell announces that interest rates will remain unchanged during a press conference at the bank’s William McChesney Martin Building on May 1, 2024 in Washington, DC.
Chip Somodevilla | Getty Images
The Federal Reserve on Wednesday forecast just one rate cut for the rest of 2024, below its March forecast of three cuts.
The central bank’s 2024 “final interest rate,” the rate at which the Federal Reserve’s key interest rate will peak, rose to 5.1%, a target range of 5% to 5.25%. That means the Fed is forecasting only a quarter-point rate cut from the current target range of 5.25% to 5.5%.
The so-called “dot plot” showing how 19 FOMC members, both voters and non-voters, showed that four officials did not favor cuts this year, while seven members predicted a cut. The remaining eight officials predict two rate cuts for 2024.
Here are the Fed’s latest targets:
Enlarge symbolArrows point outwards
Back in March, the Fed forecast three interest rate cuts this year, with the key interest rate expected to reach 4.6%. Traders priced in two rate cuts this year after a cool inflation report on Wednesday, but ahead of the release of the Fed’s new forecast.
For 2025, the central bank expected a total of four interest rate cuts or a reduction in the key interest rate by a full percentage point.
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2024-06-12 18:19:54
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