From CNBC: 2024-09-18 14:59:45

The Federal Reserve plans to lower interest rates by another half point by the end of 2024, with projections showing the benchmark fed funds rate at 4.4% by year’s end. Powell stated that the process will evolve over time, and the central bank is not rushing to make changes.

The Fed’s latest targets include a range between 4.75% to 5% for the federal funds rate, with increased confidence in sustainable inflation and balanced risks to employment and inflation goals. Officials also adjusted their projected unemployment rate to 4.4% and decreased inflation outlook to 2.3%.

Fed Chairman Jerome Powell emphasized slow, deliberate progress in interest rate cuts during a press conference following the recent rate adjustment. Through 2025, rates are expected to reach 3.4%, followed by a further decrease to 2.9% by 2026. The central bank aims to strike a careful balance in achieving economic goals.

Read more: The Fed forecasts lowering rates by another half point before the year is out