The U.S. central bank had collectively forecasted three interest rate cuts in 2024 as recently as March 21.
The U.S. Federal Reserve again maintained its current benchmark interest rate in latest Federal Open Market Committee statement on June 12, while noting that the U.S. Central Bank envisions only one rate cut in 2024.
That’s down from the Fed’s previous projection of three cuts as recently as March 21, despite inflation that has cooled in recent months, including down 0.2% during May.
For now, the current Fed rate of 5.25-5.50% remains at a 23-year high.
In a news conference following the latest FOMC meeting, Fed Chair Jerome Powell noted that despite the Reserve Bank’s collective prediction of only one rate cut in 2024, that overall forecast is comprised of individual predictions of 19 policymakers and that 15 of them projected either one or two rate cuts this year in the latest update.
“I would look at all of them as plausible,” Powell said. “No one brings to this a really strong commitment to a particular rate path. It’s just what they think in a given moment in time.”
The next FOMC meeting is set for July 30-31.
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