This Week In The Economy: Fed Expects Just One Rate Cut This Year, Positive Inflation News, Mixed US Business Sentiment

Welcome to a regular snapshot review of U.S. and international economic news that aims to 1) provide a window into the challenges and decisions facing businesses today, 2) determine the direction of economic policy — such as the speed at which central banks decide to raise interest rates, and 3) assess what the impact will be for consumers.

Fed Keeps High Rates In Place, Forecasts One Cut This Year

The Federal Reserve’s Federal Open Market Committee met this week and voted unanimously to keep its high-interest rate policy in place, although quarterly forecasts released along with the FOMC statement show Fed officials expect to carry out at least one rate cut in 2024.

“Inflation has eased over the past year but remains elevated, the statement said. “In recent months, there has been modest further progress toward the Committee’s 2% inflation objective.”