- ORIGINAL NEWS
Here’s when the Fed is likely to start cutting interest rates, according to investment strategists
- SUMMARY
The Federal Reserve (Fed) may soon reduce interest rates to combat inflation without triggering a recession.
Investment strategists predict interest rate cuts of 0.75% to 1% in 2024.
Despite recent high inflation data, experts at the Invest in Women conference believe the Fed could begin cutting rates in June 2024.
The Fed raised rates during the pandemic to curb inflation, impacting mortgage, credit card, and auto loan rates.
Historical patterns suggest the Fed may begin cutting rates around 8.5 months after its last rate hike in 2023.
Forecasts indicate a potential cut by the end of June 2024, representing a shift from previous expectations of multiple rate cuts this year.
Strategists also predict a “soft landing” for the economy, avoiding a recession.
They believe the Fed can navigate interest rate policy effectively to bring inflation under control without disrupting economic growth.
However, some concerns linger that the Fed may delay cutting rates too long.
The Fed’s actions will significantly impact consumers and businesses.
Lower interest rates could stimulate borrowing and investment, potentially boosting consumer spending and economic activity.
However, it remains to be seen how the Fed will balance controlling inflation with supporting economic growth through interest rate cuts.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“The Fed will likely achieve a so-called “soft landing” as it navigates interest rate policy, they said.”
“The U.S. economy is also likely to dodge recession as the Fed calibrates interest-rate policy”
Negative
“The question has become, at what point — and how quickly — does the central bank start to cut rates in order to avoid plunging the economy into a downturn?”
“I do worry [the Fed] may be too late to start cutting”