A trader works, as a screen displays a news conference by Federal Reserve Board Chair Jerome Powell following the Fed rate announcement, on the floor of the New York Stock Exchange on Dec. 13, 2023.
That is, the Fed is pivoting toward cutting interest rates — not in March but sometime later in the year — and the central bank is expecting to reduce short-term interest rates three times in 2024.
I never believed that the Fed would cut interest rates in March nor cut them as many as six times this year.
While it's often said that interest rates go up an escalator and come down in an elevator, I believe this cycle will show itself to work in reverse.
That, of course, could change should the economy slow significantly, or should the unemployment rate rise rapidly.
Persons:
Jerome Powell, Brendan Mcdermid, Powell, Scott Pelley, We're, Pelley, it's
Organizations:
Federal Reserve, New York Stock Exchange, Reuters, Federal, Committee, Fed
Locations:
United States