Are interest rate cuts by the FED coming in 2024?
Heading into December overall market performance has continued to support the idea that interest rate cuts from the federal reserve are coming sooner rather than later. The Fed governors this week have begun reinforcing the idea that Fed Policy might be sufficiently restrictive enough to bring inflation down to their target rate of 2%. This is also accompanied by their comments that if inflation continues on it’s downward trajectory a decrease in rates will be warranted.
Although in his speech on Friday December 1st Chairman Powell said it was still too early to declare victory and called talks of cutting rates premature. The Feds next meeting is scheduled for December 12th and 13th and we will be standing by to see which direction the Fed and chairman Powell are leaning. Right now interest rates nation wide are averaging 7.09% for 30 year conventional loans and 6.5% for 30 year va home loans. I will be back next week with another update.