The Federal Open Market Committee (FOMC) concluded its two-day meeting yesterday, where the committee maintained the target range for the federal funds rate between 5.25 to 5.5 percent for the third time.
The committee’s statement noted they would look at several factors when determining adjustments to future monetary policy, including “readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
Additionally, the committee noted they are “strongly committed to returning inflation to its 2 percent objective.”
“In its December statement, the FOMC acknowledged that inflation has made significant headway back towards the committee’s target,” said NAFCU Vice President of Research and Chief Economist Curt Long. “Updated economic projections confirm what markets have come to believe: namely, that multiple rate cuts are in store for 2024. NAFCU expects the first cut will occur during the second quarter.”
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