Art Laffer, Founder and Chairman of Laffer Associates, Reacts to Potential Federal Reserve Chairman Jerome Powell, On ‘How to Make Money’ on Whether the Fed Will Cut Interest Rates in 2024 Discuss. #foxbusiness #moneymaking
Few expect the Fed to cut rates on Wednesday. Instead, investors will analyze Fed Chair Jerome Powell’s Fed speech to determine whether expectations for an initial rate cut are correct or whether years of stubborn inflation will push the possibility of a rate cut even higher.
“Our current expectation is for three rate cuts by the end of the year, with the first rate cut scheduled for June 12, 2024,” said Brian Reiling, head of fixed income strategy at Wells Fargo Investment Institute. It will be the end of the market committee,” he said. In a note to the client. “Inflation data would need to be meaningfully disappointing to change the timing of the Fed’s first rate cut,” he added.
Like other market participants, CME’s FedWatch Toolpredicted that there would be as many as six rate cuts at the beginning of the year, with the federal funds rate reaching 4.6% by the end of the year. This forecast will be updated on Wednesday.
Fed expects further rate cuts in 2024
Inflation has not subsided as quickly as policymakers expected. Consumer prices in February were 3.2% higher than economists expected on an annual basis, with prices for items such as rent, beef and juice rising further by 5.8%, 9.2% and 27%, respectively. A separate report on producer prices rose 1.6% annually, also higher than expected last month.
Consumer inflation has fallen from a peak of 9.1%, but remains above the Fed’s 2% mandate.
Lean ground meat on sale at the new Walmart Neighborhood Market in Panorama City, California, on opening day. (Robin Beck/AFP/Getty Images/Getty Images)
Treasury Secretary Janet Yellen, speaking exclusively to Fox Business last week, regretted previous comments characterizing inflation as “temporary” and said that while prices are easing, the decline may not be “smooth.” He pointed out that there is.
Yellen: Inflation may not be falling smoothly
“The Fed is in between predicaments,” Bob Dole, CEO of Crossmark Global Investments, said in a press conference. We have to buy time here.” Appeared in “Craman Countdown”.
U.S. Federal Reserve Chairman Jerome Powell speaks during a press conference about interest rates, the economy and monetary policy measures at the Federal Reserve Building in Washington, DC, June 15, 2022. (Olivier Drierly/AFP via Getty Images/Getty Images)
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The FOMC will announce its latest decision on interest rates Wednesday at 2:00 p.m. ET, followed by Chairman Powell’s press conference at 2:30 p.m. ET.
