Federal Reserve Slashes Rate Cut Projections for 2024, Reducing Expectations from Three to One

The Federal Reserve projected only one rate cut for the remainder of 2024, down from its March forecast that called for three reductions. The Fed's "terminal rate" for 2024, or the rate at which its benchmark fed funds rate will peak, went up to 5.1%, equivalent to a target range of 5%-5.25%. In March, the Fed projected three rate cuts this year, with traders pricing in two cuts. For 2025, the Fed anticipated four rate cuts total or a 1 percentage point reduction in the fed funds rate.