When will Fed cut rate?

Saint

Valued Senior Member
1) Inflation is tamed?
2) Joblessness reduced?
3) Will stock market booming to Dow Jone 45000 point?
 
Expectations in the media are that the Fed will start to cut rates from September - likely by 0.25% - and continue to do so gradually at each of the next few opportunities in 2024 (not sure if 2 or 3 meetings).

1) - not fully. Their target is 2% inflation, and it's currently above that (at c.3%) but if nothing else happens then this should reduce to below the 2% quite soon - hence the rate cut.

2) - the Biden administration has done an excellent job with... er... jobs. More people are in work than ever before, although the jobless % is slowly rising from their historic lows, although it remains well below the long-term average.

3) - the Dow Jones will inevitably hit 45,000. This is only a 10% increase from where it is now, so this could happen sometime in 2025 or early 2026, even if just average growth, I'd have thought, notwithstanding a market correction in the meantime.
 
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