Fed Rate Cut Expectations 2024 Inflation. Inflation falling closer to the federal reserve's goal of a 2% annual rate clears the path for the fed to cut the central bank's benchmark interest rate starting in september. Last month, the fed lowered its target rate to between 4.75% and 5% in recognition of easing inflation pressures and rising risks to the job market, and penciled in.
The federal reserve cut interest rates on wednesday by half a percentage point, an unusually large move and a clear signal that central bankers think they are winning their war against. In 2024, for example, nine of the central bank’s 19 officials expect rates to end the year at about 4.4 percent, half a point below where they stand after the jumbo rate cut on.