Fed Keeps Rates Unchanged, But 3 Cuts Expected This Year

By: Movement Team

March 22, 2024

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Market Update
Fed Keeps Rates Unchanged, But 3 Cuts Expected This Year

The pivotal event of the week revolved around Wednesday's March FOMC meeting. As anticipated, the Federal Reserve kept rates unchanged, yet the unveiling of their updated SEP (Summary of Economic Projections) provided intriguing insights. Notably, they revised their GDP forecast for 2024 upwards, lowered the unemployment rate projection, and raised the Core PCE forecast (PCE being the Fed's preferred inflation index). Concurrently, they maintained their outlook of executing three rate cuts amounting to 75 basis points by year-end. So the economy is strong, inflation is a little sticky, yet the Fed is still looking to cut. They clearly are inclined to ease financial conditions, with a willingness to allow inflation to reach the 2.00% target over time. The lingering query remains: when will the rate cuts commence?

Author: Movement Team

About Movement Mortgage, LLC (“Movement”)

Movement is not just a mortgage company – they’re an Impact Lender and force for positive change. With more than 4,000 teammates across all 50 states, they reinvest the majority of our proﬁts back into the communities they serve. Movement is the 10th ranked top-producing residential mortgage company in the U.S., funding more than $20 billion in residential mortgages annually. The company has contributed nearly $400 million to the Movement Foundation since 2012, funding the Movement Schools network, affordable housing projects and global outreach efforts. For more information on Movement and Impact Lending, visit movement.com/impactreport .

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