From Time:

Interest rates are expected to be cut in the US, leading to cheaper mortgages, lower credit card APRs, and a positive impact on the stock market. However, some experts suggest that the Federal Reserve could raise interest rates before cutting them once more. The Fed is trying to balance inflation and interest rates to avoid a recession.

Dallas Federal Reserve president Lorie Logan warned that another interest rate hike could happen in 2024 due to easing financial conditions and the risk of inflation rising once again. The balance of timing and gradual rate changes is crucial for both increases and decreases to avoid an economic downturn.

Although the American economy is strong, the Fed may need to consider another rate increase to prevent inflation from rising once again. This is a cautious approach to ensure that rate cuts around a strong economic landscape do not spur excessive inflation. The central bank is also concerned that the stock market is already pricing in multiple rate cuts. Fed officials are prioritizing a balanced approach to managing rate changes.

While another rate hike cannot be entirely ruled out, experts find it unlikely given the current state of the economy. The focus is on making the shift from rate restriction to full employment to help stabilize both price and the labor market. Despite a likelihood of interest rates remaining steady, it is still crucial for the Fed to carefully consider the timing and speed of rate cuts, given strong economic indicators like low unemployment.

The Fed is unlikely to cut rates come March due to their focus on the medium to longer-term economic outlook. They want to be confident enough to make decisions that will benefit the economy in the long run. Despite public expectations, the Fed is willing to take the time to make sure any changes are safe.



Read more: Federal Reserve Might Raise Interest Rates Again Before Cuts