The Federal Reserve reduced its March projection of three rate reductions to just one rate decrease for the duration of 2024 on Wednesday.
The benchmark fed funds rate, or the “terminal rate,” set by the central bank for 2024 has increased to 5.1%, representing a target range of 5% to 5.25%.
Thus, from the present goal range of 5.25% to 5.5%, the Fed is only projecting a quarter-point rate drop.
The so-called “dot plot,” which shows the projections of 19 FOMC members—voters and nonvoters—shows that four officials support no cuts this year, while seven members predict one.
Eight officials remain, and they predict two rate reductions in 2024.
Source (CNBC)
