Fed Predicts Single Interest Rate Cut by End of 2024

Federal Reserve officials, including Philadelphia Fed President Patrick Harker and Minneapolis Fed President Neel Kashkari, indicate that a single interest rate cut by the end of 2024 is likely, provided inflation trends towards the 2% target. Harker emphasizes that the decision is data-dependent, with the potential for either more or fewer cuts based on economic conditions. Kashkari concurs, noting the Fed's current stance allows time to gather more data on inflation and the economy before making any decisions. Veronica Willis from Wells Fargo suggests that if economic data improves, two rate cuts could be possible, but the markets have already priced in the anticipation of rate cuts. The Fed's recent projections reflect a cautious approach, with policymakers reducing their estimate of rate cuts for this year from three to one.