Fed Signals Half-Point Rate Cut Before 2024 Ends, Confirms Gradual Rate Cuts Reaching 2.9% by 2026

Benzinga

The Federal Reserve signaled a potential half-point interest rate cut before the end of 2024, with two meetings scheduled in November and December. The Fed's dot plot indicated the benchmark fed funds rate will fall to 4.4% by year-end, with further cuts projected in 2025 and 2026. Interest rates will reach 3.4% in 2025 and 2.9% by 2026. The Fed expressed increased confidence that inflation is steadily approaching 2%, with risks to its employment and inflation targets seen as balanced.

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00:00It's Benzinga, and here's what's on the block.

00:02The Federal Reserve signaled a potential half-point interest rate cut before the end of 2024,

00:07with two meetings scheduled in November and December.

00:10The Fed's dot plot indicated the benchmark Fed funds rate will fall to 4.4 percent by

00:15year-end, with further cuts projected in 2025 and 2026.

00:20Interest rates are forecasted to reach 3.4 percent in 2025 and 2.9 percent by 2026.

00:26The Fed expressed increased confidence that inflation is steadily approaching 2 percent,

00:31with risks to its employment and inflation targets seen as balanced.

00:34For all things money, visit Benzinga.com.

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