Central Banks
Fed Prepares to Shift to Rate Cuts in 2024 as Inflation Eases
- Powell says officials discussed prospect of easing policy
- FOMC’s median forecast implies three rate cuts next year
Jerome Powell on Dec. 13.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
The Federal Reserve pivoted toward reversing the steepest interest-rate hikes in a generation after containing an inflation surge so far without a recession or a significant cost to employment.
While Chair Jerome Powell said Wednesday policymakers are prepared to resume rate increases should price pressures return, he and his colleagues issued forecasts showing that a series of cuts would be likely next year. Powell said the topic came up at their meeting, where the Fed decided to keep rates at a 22-year high for a third straight time.