Fed sees lower rates in 2024 as inflation fight winds down
The forecast is another hopeful sign that the U.S. economy might conquer inflation without a recession or a sharp rise in joblessness.
By Victoria Guida
12/13/2023 02:34 PM EST
Federal Reserve officials on Wednesday suggested that victory over inflation is within sight, signaling that they are likely done raising interest rates and that borrowing costs will go down somewhat next year.
Members of the central bank’s rate-setting committee agreed to hold their main policy rate steady in their last vote of the year, a reflection of mounting data showing that price spikes continue to cool. In a sign of growing optimism that inflation is largely under control, Fed policymakers even went as far as penciling in three rate cuts for 2024.
The Fed’s preferred inflation gauge rose 3 percent over the 12 months ending in October, and officials projected it would fall to 2.8 percent by the end of the year, inching closer to their 2 percent target.
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https://www.politico.com/news/2023/12/13/fed-end-rate-hike-campaign-inflation-cools-00131580
