Home NewsStory Federal Reserve FOMC Meeting: Interest Rate Decision and Economic Forecasts

Federal Reserve FOMC Meeting: Interest Rate Decision and Economic Forecasts

by Ouess

The Federal Reserve concluded its FOMC meeting today, maintaining unchanged interest rates, aligning with expectations. Yet, the focus shifts to the Fed’s economic, inflation, and interest rate projections. Despite market predictions of four to five rate cuts in 2024, major financial institutions like Goldman Sachs and Barclays anticipate only two rate reductions, similar to the Fed’s September forecast.

While the US economy surged in the third quarter, expectations suggest growth below 2% in the final months of this year and into 2024. Job gains and wage growth remain steady, though modest. Moody’s analysis suggests this stability should alleviate concerns about wage-induced inflation.

Reports indicate the Fed may slightly decrease its anticipated annual inflation measure (PCE) while raising the growth projection to 1.6% in 2024. It is also expected to revise the unemployment rate forecast to 4% by the end of next year from the current 3.7%, eventually reaching 2.5%.

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