US Fed Hikes the Interest Rate for 2024 Dollar Inches Higher

The US Fed meeting is on its second day. It will conclude on 13 December 2023, Wednesday. The meeting discussed several different points. Most probably, US Federal going to hike its interest rate for 2024. The recent estimations mention that the Federal bank rate is set at 5.25-5.50 percent. The meeting took place from 12 December 2023 to 13 December 2023. The US economy operates on high interest rates. It can be beneficial for the economy to escape the Recession. We have discussed details about The US Federal meeting in the article below.

US Fed Hikes the Interest Rate for 2024 Dollar Inches Higher

US Federal Rate Hike for 2024

US Federal Meet Reports shared the interest rates to be high like earlier. However, there is a possibility of some reduction after May 2024. There is not much impact on inflation. The policy rates can be between Rs. 5.25 and 5.50 %. The rates were increased to lower down the borrowings by making the borrowing rates higher. As the borrowing goes high, one will borrow less than others. There will be another Federal meeting from 30 January to 31 January. It might bring some new changes as well. The current meeting kept the interest unchanged.

The following rate cut is expected by 2024:

June 2024 First Cut: 53%
2024 Fed Funds rate Year-end cut: 4.53%
Fed Ends Quantitative Tightening: November 2024

The target of the Federal Reserve to achieve 2% inflation is still slow. It expects to reduce the inflation to 4.53% in December 2024 and 3.73% in December 2025. The Federal is successfully able to control the further growth of inflation. However, it’s still more than double the inflation target. Fed has mentioned that the upcoming actions will depend on the performance of the economy. The market should expect no hike in the rates.

While all this debate goes on inflation in the US, it is seen that the unemployment rate has fallen to 3.7 percent. Retail sale and CPI is also something to be kept in mind. The Fed is focused on the target of bringing inflation under control. It will work over some years. The expectations are that the Fed will be able to complete the target by December 2026. It will be interesting to see what decision the Fed takes in mid-2024. The expected June 2024 cut rate is 53%. The experts believe that the rates should not be hiked. However, the Fed is not seen giving any hint about stopping to hike rates. We hope you get enough details about the US Federal Reserve Reports below.

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