Hoenig Cautions Against Expecting Three Rate Cuts Amid Economic Resilience

29 February 2024

Former Federal Reserve President Thomas Hoenig expressed surprise at the prospect of the Federal Reserve cutting interest rates three times in 2024, considering the current economic landscape. Speaking on CNBC’s “Squawk on the Street,” Hoenig suggested that, based on the resilience of the economy, persistent inflation above 3%, strong consumer spending, and low unemployment rates, one or two rate cuts would be more probable than three. His comments reflect skepticism about the need for such aggressive monetary policy easing given the economy’s enduring strength.

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