The Federal Reserve isn’t shaking up its approach to inflation, even as monthly inflation data comes in cool and officials lower their forecast for the number of rate cuts we may see before the end of 2024.
The Federal Open Market Committee voted to hold rates steady this afternoon, keeping the federal funds rate between 5.25% and 5.5%. The biggest development for markets was the announcement that officials no longer expect three interest rate cuts before year-end. The rough consensus now is for one with the possibility of two.
