Economic Slowdown Predicted for U.S. in 2024
Economists are forecasting a slowdown in the U.S. economy for the first quarter of 2024, falling short of expectations. The Federal Reserve is set to announce its interest rate decision for the third time this year, with expectations that rates will remain steady due to concerns about inflation.
Inflation has been a major concern for policymakers, leading to a delay in expected rate cuts. Economists are now predicting that the first rate reduction may not occur until later in 2024, possibly in September or November. This means that consumers will likely continue to face high borrowing costs for credit cards, mortgages, and other loans.
Fed Chair Jerome Powell is set to announce the rate decision on Wednesday, with a press conference to follow. The continued rise in inflation has made it difficult for the Fed to lower rates as originally anticipated.
Analysts anticipate one or two rate cuts in 2024, but the size of those cuts may be smaller than initially expected. Consumers should brace themselves for borrowing money to remain expensive, with mortgage rates potentially surpassing 7%.
However, savers may benefit from higher interest savings accounts and certificates of deposit as a result of the Federal Reserve’s interest rate decision. Stay tuned for more updates as the economy continues to evolve in 2024.
“Infuriatingly humble tv expert. Friendly student. Travel fanatic. Bacon fan. Unable to type with boxing gloves on.”