Despite a more positive economic growth outlook, the Federal Reserve still predicts three interest rate cuts in 2024. This is because inflation is still higher than the Fed's target of 2%, and recent data suggests it may not be declining as quickly as hoped. The median projection for the federal funds rate is 4.6% in 2024, down from the current 5.25%-5.50% range.
The Federal Reserve is meeting this week to discuss interest rates. They are expected to maintain the current range and project three rate cuts later this year. The meeting will focus on the "dot plot," which shows individual members' interest rate expectations, and could indicate a shift in the outlook on cuts. The Fed will also release economic projections for GDP, inflation, and unemployment, likely reflecting a revised inflation outlook and a slightly upgraded GDP forecast.
