Will the Fed Cut Rates?

As the Federal Reserve gears up for its meeting on January 31, 2024, there’s a significant shift in expectations due to the improving economic landscape. Inflation rates are nearing the Fed’s target, and the economy exhibits robust growth with strong consumer spending and historically low unemployment rates. This positive trend defies earlier recession forecasts, sparking debates on the durability of this economic strength. Federal Reserve officials, grappling with post-pandemic economic assessments, are cautiously contemplating rate cuts. The first cut might occur around May or June, with the exact timing being a primary discussion point at the upcoming meeting.