Fed Predicts Two Rate Cuts in 2024, HKMA Lowers Benchmark Rate

Fed ⁤Signals Slower Rate ‍Cuts in 2024, Hong Kong Follows Suit

WASHINGTON – The Federal Reserve delivered⁤ a widely anticipated quarter-point⁣ interest rate cut on Wednesday, lowering its benchmark rate to a range of ⁤4.25% to 4.5%.⁤ This⁤ marks⁢ the third consecutive rate cut, bringing the total reduction to 1% since the Fed ⁤began easing monetary⁣ policy.

Though,the Fed’s post-meeting ⁤statement hinted at a more cautious approach to future rate cuts,suggesting only two more reductions are likely in 2024.This projection, based⁤ on the median forecast⁢ of Fed‍ officials, contrasts with market expectations for more aggressive ⁢easing.The Hong Kong Monetary Authority ‍(HKMA) swiftly followed suit, lowering its base⁤ rate to 4.75% in line ‍with the Fed’s move.

While acknowledging continued economic expansion and a softening labor market, the Fed statement highlighted persistent inflationary pressures.

“Economic activity has been⁣ expanding at a moderate pace,” the statement⁣ read. “Job gains have been solid, on average, in ‍recent months, ⁣and the unemployment rate has remained low.⁣ Inflation remains elevated.”

Fed Chair Jerome Powell emphasized a data-dependent approach to future policy decisions.

“Today’s decision ⁤reflects our ongoing assessment of⁢ the⁤ economic outlook and the risks to⁣ that outlook,” Powell said at a press conference.”We will⁣ continue to carefully monitor incoming data and adjust our policy stance as‍ appropriate.”

The Fed’s updated economic projections,⁤ known as the “dot plot,” revealed a more hawkish outlook for 2024.Officials now anticipate⁢ the ⁣policy rate to reach 3.9% by the end ⁢of next year, ⁢up from the 3.4% projected in September.

The Fed⁤ also revised its growth forecast upward, predicting a 2.1% expansion in 2024, compared to the previous estimate of⁢ 2%. ‍Core inflation is expected to moderate to 2.5%, slightly higher⁤ than the earlier projection of 2.2%.

Following the Fed’s proclamation, interest rate futures indicated a ⁣90% probability that ⁤the central bank will hold rates steady‍ at its next meeting in January, which will ⁤take place after ⁤the inauguration of President-elect Donald⁣ Trump.

“Slow and Steady Wins the Race”:⁤ fed Signals Cautious Approach to Future⁢ Rate Cuts, Hong Kong Follows

Washington D.C. – The Federal Reserve announced a widely anticipated quarter-point interest rate cut on ⁤Wednesday,bringing the benchmark rate down to a range of 4.25% to 4.5%. This marks the third consecutive ⁣rate cut as ⁢the Fed began⁤ easing monetary⁢ policy, totaling a 1% reduction.

Though, the Fed’s post-meeting statement hinted at a more measured approach ⁣to future rate cuts. The median forecast of‍ Fed officials suggests only two more reductions are likely in 2024, contrasting with market expectations for more aggressive easing. the Hong Kong Monetary Authority (HKMA) quickly mirrored the Fed’s move, lowering its ⁢base rate to 4.75%.

Though acknowledging continued economic expansion and a softening labor market, the Fed statement highlighted persistent inflationary pressures.‍

“Economic activity has ⁤been expanding at a moderate pace,” the statement read. “Job gains have been solid, on average, in recent ⁢months, and the unemployment rate has remained low. Inflation remains elevated.”

Fed Chair Jerome ⁣Powell emphasized a data-dependent approach to future policy decisions. “Today’s decision reflects our ongoing assessment of the economic outlook and the risks to that outlook,” Powell stated at a press conference. ⁤”We‍ will continue to carefully monitor incoming data ⁣and adjust our policy stance as appropriate.”

The Fed’s updated ⁤economic projections, known as the “dot plot,” revealed a ⁢more hawkish outlook for 2024. Officials now anticipate the⁢ policy rate to reach‍ 3.9% by the end of next year, up from the 3.4% projected in September. The Fed also revised⁣ its growth forecast upward, predicting a 2.1% expansion in 2024, compared to the previous⁣ estimate of 2%. Core ⁣inflation is expected to moderate to 2.5%,slightly higher then the earlier projection of 2.2%.

Following the Fed’s announcement, interest rate futures ⁤indicated a 90% probability that the central‍ bank will hold rates steady at its‍ next meeting in ⁢January, which will take place after ⁢the inauguration of President-elect Donald Trump.