{"id":2124344,"date":"2023-12-13T18:21:01","date_gmt":"2023-12-13T23:21:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-leaves-interest-rates-unchanged-indicates-3-cuts-coming-next-year\/"},"modified":"2023-12-13T18:26:39","modified_gmt":"2023-12-13T23:26:39","slug":"federal-reserve-leaves-interest-rates-unchanged-indicates-3-cuts-coming-next-year","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-leaves-interest-rates-unchanged-indicates-3-cuts-coming-next-year\/","title":{"rendered":"Fed keeps rates steady, plans 3 cuts in 2022"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffederal-reserve-leaves-interest-rates-unchanged-indicates-3-cuts-coming-next-year%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2124344&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<figure class=\"wp-block-image size-large\"><figcaption class=\"wp-element-caption\">(Photo\u200d by Chip Somodevilla\/Getty \u2064Images)<\/figcaption><\/figure>\n<p>OAN\u2019s <a href=\"https:\/\/www.oann.com\/tag\/james-meyers\">James Meyers<\/a><br \/>3:15 PM\u200c \u2013 Wednesday, December 13, \u20622023 <\/p>\n<p><strong>The Federal Reserve Keeps Interest Rate Predictions Unchanged, Indicating Possible Slowdown in Inflation<\/strong><\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>Policymakers had just recently forecast a series of cuts in 2024. <\/p>\n<p>The decision left interest\u2064 rates alone at a range of 5.25% to 5.5%,\u200d which is the \u2063highest level in 22 years. Lawmakers left \u200cthe door open\u200b to multiple rate cuts next\u200b year, with signs showing the\u2064 economy is beginning to slow down. <\/p>\n<p>Economic projections showed how Fed officials expect rates to\u200c fall to\u2062 4.6% by the end of 2024,\u2063 which suggests that there will be at least \u2062three quarter-point rate cuts next year. <\/p>\n<p>Additionally, policymakers also said that there\u200c will \u2062be additional rate cuts in the years 2025 \u2062and 2026.\u00a0 However,\u2062 officials claim \u2062that they do not see rates rising further next year in 2024.<\/p>\n<p>After the decision, stocks surged and bond yields fell\u2062 with the Dow\u200d Jones Industrial Average, \u200dtopping \u200c37,000 for the \u200dfirst time\u2062 ever. <\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote data-service=\"twitter\" data-category=\"marketing\" data-placeholder-image=\"https:\/\/c3.oann.com\/wp-content\/plugins\/complianz-gdpr\/assets\/images\/placeholders\/twitter-minimal.jpg\" class=\"cmplz-placeholder-element twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Chair Jerome\u2062 Powell indicates the Fed\u200c may be done\u2063 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-delivers-bad-news-about-expectations-for-inflation-raising-interest-rates-report\/\" title=\"Federal Reserve Delivers Bad News About Expectations For Inflation, Raising Interest Rates: Report\">raising interest rates<\/a>, but warns extra hikes are still possible:<\/p>\n<p>\u201cWhile \u200cwe believe our policy rate is likely at or near its peak for this tightening cycle \u2026 ongoing progress\u2064 toward our 2% inflation objective is not assured.\u201d\u2063 <a href=\"https:\/\/t.co\/PTTNA6nv6q\">pic.twitter.com\/PTTNA6nv6q<\/a><\/p>\n<p>\u2014\u2062 The Recount (@therecount) <a href=\"https:\/\/twitter.com\/therecount\/status\/1735029109586055387?ref_src=twsrc%5Etfw\">December 13, 2023<\/a><\/p><\/blockquote>\n<p><script type=\"text\/plain\" data-service=\"twitter\" data-category=\"marketing\" async data-cmplz-src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script> <\/div>\n<\/figure>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cWe added the word \u2018any\u2019 as an acknowledgment\u200d that we are likely at, or near, the peak rate for this cycle,\u201d \u200dFed Chair Jerome Powell\u200c told reporters at the post-meeting \u2064press conference\u200c in Washington. \u201cBut participants also didn\u2019t want to\u2062 take the possibility of further hikes\u200c off the table.\u201d<\/p>\n<\/blockquote>\n<p>The move comes\u2062 after policymakers\u200d raised interest rates 11 times since March 2022, in hopes of lowering inflation. <\/p>\n<p>The\u200c higher rates have caused the average rate on 30-year mortgages above 8% for the first time in decades. While economists \u200bhave \u200dclaimed \u2063that inflation has\u2063 gone down in recent months, it still remains \u200cup 3% \u2063compared with the \u2064same time a year ago, according to the most recent Labor Department data. <\/p>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cThe major takeaway from the December\u2064 policy\u2062 meeting\u2063 is that \u200dthe Federal Reserve is forecasting a soft landing, full employment and intends to \u2063reduce its federal funds policy rate by at least 75 basis points in 2024 to support the\u200c ongoing business expansions,\u201d said Joe Brusuelas, RSM chief economist.<\/p>\n<\/blockquote>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cAnd from our \u2062vantage point that is about the\u200b best holiday \u200cgift\u200c a central banker can bestow upon the investment community, policymakers, and the\u200c public.\u201d<\/p>\n<\/blockquote>\n<p>Stay informed! Receive breaking\u2063 news blasts directly to your inbox for free. Subscribe here. <a href=\"https:\/\/www.oann.com\/alerts\">https:\/\/www.oann.com\/alerts<\/a><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t \t\tShare this\u200c post!\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>U.S. Supreme Court Orders \u2062President Trump&#8217;s Legal \u200dTeam to \u2064Respond to\u200d Special\u200b Counsel Jack Smith&#8217;s Petition on Presidential Immunity<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Florida Congressman Greg Steube Shares Opinions on Pending Foreign Intelligence And Surveillance Act\u2063 and Impeachment Inquiry Votes<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Hunter Biden&#8217;s Refusal to \u2064Sit for Republican&#8217;s \u2062Closed-Door\u2064 Deposition\u2063 Raises Questions<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Congress \u2062Reevaluates Whole Milk&#8217;s Place in School Cafeterias<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Tesla Recalls Over Two \u200cMillion\u200b Vehicles in the U.S. to Install New Safeguards<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Netflix Expected to Surpass Disney+ in \u200bU.S. Advertising Dollars\u2062 as Viewers Shift \u200dto Ad-Supported Plan<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Microsoft Strikes Deal \u2062with\u200d AFL-CIO Union Federation to\u200c Remain Neutral in Unionization Efforts<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Amazon.com \u2064Requests Dismissal of U.S. \u200dGovernment Antitrust Lawsuit<\/strong><\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> How does the Federal Reserve&#8217;s decision to keep interest rate predictions unchanged reflect their cautious\u2064 approach to current economic conditions?<\/h2>\n<p><span>  The Federal Reserve, the central bank of the United \u2064States, recently announced that it will\u200c keep \u2064interest rate predictions unchanged, indicating\u2063 a possible slowdown in inflation. This \u2062decision comes after policymakers had previously \u2064forecast\u2064 a \u200dseries of cuts in 2024. The interest \u200drates will remain at a range of 5.25% to \u20635.5%, which\u200b is the highest\u200b level in 22 years.<\/p>\n<p>However, the\u2062 Federal\u2063 Reserve left the door open for multiple rate cuts next year, as signs show the economy is starting to slow down. Economic projections suggest that \u2064rates will fall to 4.6% by the end \u200bof 2024, indicating at least\u2063 three quarter-point rate cuts in the coming year. Policymakers also mentioned the possibility\u200d of additional rate cuts in 2025\u2062 and 2026. However, they emphasized that they \u200cdo\u200d not foresee rates rising further in 2024.<\/p>\n<p>After the announcement, stocks surged and bond yields fell. The \u2063Dow Jones Industrial Average surpassed \u200b37,000 for the \u200bfirst time ever. \u2064This indicates that investors are optimistic about the Federal Reserve&#8217;s decision to potentially lower \u2064interest \u200crates in the future.<\/p>\n<p>In a statement, Fed \u200dChair Jerome Powell\u2064 acknowledged that they may be nearing \u200bthe peak\u2063 rate for \u2064this cycle. However, he also mentioned that participants did not\u2064 want to eliminate the possibility \u200dof \u2063further rate hikes. Powell emphasized the importance of ongoing progress towards\u2064 the inflation target of 2%.<\/p>\n<p>The decision to keep\u200d <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ukraine-invasion-sanctions-will-see-russian-economy-shrink-by-35-percent-jp-morgan\/\" title=\"Ukraine Invasion Sanctions Will See Russian Economy Shrink by 35 Percent: JP Morgan\">interest rates unchanged<\/a> comes after policymakers raised rates 11\u2063 times \u200bsince March 2022, aiming to curb \u2064inflation. These higher rates have led to an average rate of above \u200c8% for 30-year mortgages, a level not seen in \u200bdecades. While there has been a decrease \u2062in inflation in recent months, it remains up 3% compared to the same time the previous year, according to the latest Labor\u200d Department \u2063data.<\/p>\n<p>Joe Brusuelas, RSM chief economist, commented on the December\u2062 policy meeting, stating that the Federal Reserve is\u200c forecasting a soft landing and full\u200c employment. He also \u200cmentioned that the Federal Reserve intends to reduce\u2064 its federal funds policy rate by at least 75 basis points in 2024 to support ongoing business expansions.<\/p>\n<p>The Federal Reserve&#8217;s decision to keep interest rate predictions unchanged reflects the cautious approach\u200c they are taking in response to the current economic conditions. As inflation remains a \u200bconcern, the Federal Reserve aims to strike a balance between supporting economic growth and managing\u2062 inflationary pressures. This \u2063decision\u2062 will have implications for businesses, consumers, and investors alike, as they adjust their strategies based\u200d on the Federal Reserve&#8217;s\u2063 outlook for interest \u200crates in the coming months.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve, in its third consecutive decision, maintained interest rate predictions unchanged, suggesting a potential slowdown in inflation. Policymakers had previously anticipated a sequence of rate reductions<\/p>\n","protected":false},"author":2301,"featured_media":2124345,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2124344","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2124344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2301"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2124344"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2124344\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2124345"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2124344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2124344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2124344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}