Share this @internewscast.com

Wall Street isn’t expecting any drama when the Federal Reserve announces its final interest rate decision of the year on Wednesday.

The U.S. central bank is expected to leave rates at their current level of 5.25% to 5.50%. That would be the third consecutive meeting where the Fed has left rates unchanged after it raised them at a historically rapid pace beginning in March 2022.

Annual inflation was at about 8% when the Fed started raising rates last year. In June it peaked at 9.1%. As of November, inflation was down to a more manageable level of 3.1%.

The Fed last raised rates at the end of July. Experts and investors are growing convinced that it is probably done raising interest rates for the foreseeable future.

“We think that the hiking cycle is done, though the committee will reserve the right to hike if necessary,” a group of Bank of America economists wrote in a research note published on Friday.

Based on futures market data, CME Group’s FedWatch Tool says the odds are well above 90% that rates stay the same this month and at the Fed’s late January meeting as well.

After that, futures market data shows that market participants think there’s a strong chance the Fed will start cutting rates and almost no chance it will raise them further.

That’s led to a decline in long-term Treasury bond yields and in interest rates on mortgages and other loans. The yield on the 10-year Treasury note peaked at nearly 5% in mid-October, and it’s now down to about 4.2%.

According to the government-backed lender Freddie Mac, the interest rate on a 30-year fixed rate mortgage is down to about 7% as of Tuesday after reaching 23-year highs of 8% in early October.

The Bank of America team wrote that it thinks the members of the Federal Open Market Committee will forecast lower interest rates in 2024 as well.

Referencing the Fed’s main interest rate, called the Federal Funds Rate, they wrote, “we look for the median member to project a 4Q 2024 funds rate of 4.6%, versus 5.1% in September. This would suggest that three [0.25%] cuts are likely if the economy evolves in line with the Fed’s baseline.”

Share this @internewscast.com
You May Also Like
Antisemitic attackers violently target synagogue, Israeli restaurant in Australia

Attackers with antisemitic intent violently target synagogue and Israeli restaurant in Australia

<!–> Rise in Antisemitic Incidents in Australia A synagogue in Melbourne was…
Legoland opens resort in Shanghai, the first in China

Legoland launches its inaugural resort in Shanghai, China

It is one of 11 parks across the world and was built…
South Philly shooting today: At least 8 wounded in mass shooting inside 7 Elements Restaurant Bar and Lounge in Philadelphia, PA

Mass Shooting at 7 Elements in South Philly: 8 Injured

PHILADELPHIA — At least eight people were wounded in a mass shooting…
Body found in search for Brian Tarrence in Turks and Caicos

A Body Discovered During Search for Brian Tarrence in Turks and Caicos

A decomposed body has been discovered amid the search efforts for a…
A man in a military uniform stands with a flag.

I’m the Leader of a Tiny Desert Empire in America: We’ve Declared War on Germany and Host Celebrity Guests

IN the sun-scorched high desert of Northern Nevada lies a tiny self-declared…
Parents desperately seeking answers on missing campers after Texas flood

Identities Released of Three Campers Who Died as Texas Flood Death Toll Increases

Three young girls were found dead after a devastating flood swept through…
Texas floods kill at least 24; search for missing continues

At Least 24 Dead in Texas Floods; Search for Missing People Ongoing

The destructive force of the fast-rising waters just before dawn Friday washed…
Celebrities, corporations open wallets after deadly flood in Texas Hill Country

Stars and businesses donate generously after Texas Hill Country flood disaster

As the search and relief efforts continue for victims affected by a…
Two girls, Renee Smajstrla and Janie Hunt, at Texas Christian camp found dead

Two Young Girls, Renee Smajstrla and Janie Hunt, Discovered Deceased at Texas Christian Camp

Two girls from Camp Mystic, who were missing, were discovered deceased during…
Ukraine, Denmark ink landmark deal to produce weapons in Europe

Ukraine and Denmark Sign Historic Agreement to Manufacture Weapons in Europe

Kyiv struck a landmark deal with Denmark Friday that paves the way…
Square Roots Festival 2025: Live music festival returns to Lincoln Square, Chicago with bands, craft beers and family fun

Square Roots Festival 2025: Lincoln Square, Chicago Welcomes Back Live Music, Craft Beers, and Family Fun

CHICAGO (WLS) — The Square Roots festival is set to return from…
Delicious: NPR Quietly Forced to Report Major Restaurant Chain Is Ending Egg Surcharge for Customers

Tasty Tidbit: NPR Subtly Reveals Major Restaurant Chain’s Decision to Remove Egg Surcharge

Since President Trump assumed office, the price of eggs has significantly decreased,…