Skip to main content. Skip to contact links. Skip to navigation. If you wish for the loan officer to reach out to you, click to skip to their contact form. If you have questions for this loan officer, click to call them. If you need loan servicing, click to call our loan servicing department at 855-979-1084 Skip to footer navigation.
Jessica Talton

Jessica Talton

Branch Leader
Movement Mortgage
NMLS ID # 1045355

Has the Fed Changed Their 2024 Outlook?

By: Movement Staff
September 22, 2023

A more hawkish Fed. That was the tone of the FOMC meeting on Wednesday. As expected, the FOMC opted to keep rates unchanged for this month. However, what caught many by surprise was the Fed's future guidance. Twelve out of the nineteen members projected another rate hike in 2023, while the committee reduced its rate cut projection for 2024. These projections caught markets somewhat off guard resulting in 2-year yields going through 5.15% and 10-year yields up through 4.42, about a 10bps jump on both. The prevailing market narrative suggests that the Fed has finished hiking rates, but that rates will remain “higher for longer.”

Market participants point to the lowering inflation trend and the labor market realignment as key factors in another Fed pause at the November meeting. Additionally, Thursday morning economic data saw another soft print on jobless claims, which sent yields higher yet again. The tug-of-war between the markets and the Fed, coupled with increasing discussions about a potential government shutdown in early October, suggests that volatility is likely to persist.

Author: Movement Staff

The Market Update is a weekly commentary compiled by a group of Movement Mortgage capital markets analysts with decades of combined expertise in the financial field. Movement's staff helps take complicated economic topics and turn them into a useful, easy to understand analysis to help you make the best decisions for your financial future.

RELATED

Jessica Talton
Jessica Talton
Branch Leader
Ready to learn more or get started? Complete the form and let’s connect.
441 Ramsay Way Suite 15-203, Kent, WA 98032
(opens in a new tab)
NMLS # 1045355

State License #CA-DFPI1045355-CA DFPI under the California Residential Mortgage Lending Act, GA-1045355, IL-031.0084742, KS-LO.0053317, OR, WA-MLO-1045355