The Fed forecasts lowering rates by another half point before the year is out

Published On Sep 18, 2024, 2:25 PM

The Federal Reserve has indicated that it will likely lower interest rates by another half-point before the end of 2024, dropping the benchmark fed funds rate to a range between 4.25% and 4.5%. This decision is based on confidence that inflation is moving towards the target rate of 2%. The Fed has projected interest rates to fall further to around 3.4% by the end of 2025. Unemployment expectations have increased to 4.4%, while the inflation forecast has been slightly reduced to 2.3%.