AFMC - Q&A: Fed Rate Cut Edition

2024-03-22 03:00:00 ET

Summary

• At Wednesday’s FOMC meeting the Fed stood by their estimate of 3 rate cuts in 2024.
• The reason the Fed hasn’t moved to cut just yet is because they’re still a little cautious about another flare-up in inflation.
• There was a lot of chatter after the FOMC meeting about how the Fed raised economic growth and inflation projections and still maintained the expectation of three cuts this year.

There are a lot of questions about Fed policy these days and where things might be headed. Here are some commonly asked questions I’ve been getting lately:

1) Why is the Fed considering a rate cut?

At Wednesday’s FOMC meeting the Fed stood by their estimate of 3 rate cuts in 2024. This took some people by surprise as recent inflation readings have come in a little hotter than expected and could justify higher rates for longer....

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