FOMC meets today; potential for rate cuts in early 2024

The Federal Open Market Committee (FOMC), the monetary policy-setting arm of the federal reserve, begins its final two-day meeting of 2023 today.

Ahead of the discussion around the state of the economy, NAFCU Vice President of Research and Chief Economist Curt Long said he expects the committee to acknowledge that “monetary policy is restrictive,” which may lead to potential rate cuts in early 2024. His analysis was featured in CU Insight.

Following the release of minutes from the FOMC’s last meeting, Long said that, based on “the significant moderation in inflation in 2023, NAFCU believes the FOMC is done raising rates in this cycle and will proceed with the first rate cut in the first half of 2024.”

Stay tuned to NAFCU Today for a breakdown on the Fed’s discussion from our award-winning Research Team after the meeting concludes.