The Fed’s policymakers also signaled that they expect to make three quarter-point cuts to their benchmark interest rate next year, fewer than the five envisioned by financial markets and some economists. Rate cuts by the Fed would reduce borrowing costs across the economy. Stock prices could rise, too, though share prices have already rallied in expectation of rate cuts, potentially limiting any further increases. Recent economic data have modestly cooled financial markets’ expectations for early rate cuts. 5 ways inflation impacts interest rates How inflation and interest rates impact household budgets Higher interest rates Lower interest rates Consumer loans Savings accounts Impact lag

Source: Daily Sun December 14, 2023 01:37 UTC