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Fed’s Mester still expects rate cuts this year, but rules out May

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Alcuria
Member

Fed’s Mester still expects rate cuts this year, but rules out May

https://www.cnbc.com/2024/04/02/feds-mester-still-expects-rate-cuts-this-year-but-rules-out-may.html

 

Key Points

  • Cleveland Fed President Loretta Mester said Tuesday she still expects interest rate cuts this year but ruled out the next policy meeting in May.
  • Mester also thinks the long-run federal funds rate will be higher than the long-standing expectation of 2.5%. Instead, she sees the so-called neutral or “r*” rate at 3%.

I've been thinking about if (when?) some credit card companies may change the T&C such that for variable interest rates, the base rate is increased, so that higher rates will become "the norm". 

Message 1 of 3
2 REPLIES 2
AndySoCal
Valued Contributor

Re: Fed’s Mester still expects rate cuts this year, but rules out May

@Alcuria  The  Fed officials are saying the expect interest rate cuts but the inflation rate is not moving in the right direction. Keep in mind the 22 of the 23 interest rate increases has been a unamious agreement. The 23 interest rate hike was one Fed official agreed rates should be raised but not by the amount of the increase the others ha agreed on. Interest rates are not moving anywhere anytime soon.  The most recent one of these came from Vanguard

https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/why-fed-wont-cut-rates-this... 

 

Fed officials keep saying not any time soon.  The rate cuts as one Fed official said it is a projection not a promise.

 

 

Wall Street keeps betting on a date each time they have been wrong so far.

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CorpCrMgr1
Established Contributor

Re: Fed’s Mester still expects rate cuts this year, but rules out May

Thank you for sharing. My thought is a cut or two by mid Fall.

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