The Fed Walks Back Its Interest Rate Cut Guidance (Yet Again)

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In its latest guidance released this week, the Federal Reserve is holding interest rates steady for now. The Federal Funds rate will remain unchanged at 5.25%.

But the Fed did lower its rate cut forecast for 2024 to just 1. And it raised its 2025 rate cut expectations upwards from 3 to 4.

It largely did this because its outlook on inflation is notably more optimistic than in previous months.

Wall Street certainly liked what it heard, with the S&P jumping over 1% on the news and Treasury yields falling.

But does this slightly more optimistic view actually change anything?

Video Length: 01:02:20

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