Will the Federal Reserve cut interest rates again this year?
The Federal Reserve handed down a large interest rate cut this week, dialing back the central bank’s fight against inflation and signaling welcome relief for borrowers. It remains to be seen, however, whether the Fed will continue to lower rates and further ease the burden for people and companies saddled with loans. The Federal Open Market Committee (FOMC), a policymaking body at the Fed, on Wednesday forecast further interest rate cuts. By the end of 2024, interest rates will fall nearly another half of a percentage point from their current level of between 4.75% and 5%, according to FOMC projections. Interest rates will drop another percentage point over the course of 2025, the projections further indicated. Speaking at a press conference in Washington, D.C. on Wednesday, Fed Chair Jerome Powell said the projections reflect expectations that the economy will sustain the same pair of trends that prompted the rate cut in the first place: falling inflation and rising unemployment. RELATED: The Federal Reserve is finally lowering rates | Here’s what consumers should know “These projections, however, are not a committee plan or decision,” Powell said.