{"id":163321,"date":"2023-12-13T12:42:10","date_gmt":"2023-12-13T19:42:10","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=163321"},"modified":"2023-12-13T12:42:13","modified_gmt":"2023-12-13T19:42:13","slug":"powell-tries-lowering-expectations-heading-into-2024","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/powell-tries-lowering-expectations-heading-into-2024","title":{"rendered":"The Fed Is Trying Its Best To Lower Expectations in 2024 as Pundits Call for Rate Cuts"},"content":{"rendered":"\n

The year’s final Federal Open Market Committee (FOMC) meeting concluded with no changes to the federal funds rate.<\/span><\/p>\n\n\n\n

This is now the third consecutive meeting that the Fed has held rates steady as they continue to hope that the previous rate hikes are still working their way through the economy\u2014and will be enough to cool inflation to that coveted 2%. <\/span><\/p>\n\n\n\n

Looking at the <\/span>CME Group FedWatch Tool<\/span><\/a>, which uses futures investing to determine the probability of future Fed moves, the central bank will again hold rates steady at its January meeting. But by March or May, the chance of a rate cut soars, according to the tool. Though those probabilities are always in flux, at the time of writing, there was a 40% chance the Fed would lower rates in March, and by May, it\u2019s 73%.<\/span><\/p>\n\n\n\n

It appears Fed Chair Jerome Powell wants to temper those expectations, though\u2014at least if you listen to his most recent speech at Spelman College. Here\u2019s what he said\u2014and what other Fed members and economists are thinking about\u00a0<\/span>interest rates as we head into the new year<\/span><\/a>.<\/span><\/p>\n\n\n\n\n\n\n

\n