1/17/2024 0 Comments Sunbiz look up a corporationIn a soft-landing scenario, the Fed only needs to trim rates in response to further easing in inflation pressures, just enough to maintain tight policy without loosening it." Greg McBride, chief financial analyst at Bankrate, said in a statement that "nothing in the economy suggests the Fed needs to be in a hurry to cut interest rates in 2024. It's unclear when exactly the Fed will decide to cut interest rates next year. According to an October survey from the Wall Street Journal of more than 450 small-business owners, more than half of them reported that high interest rates were impacting their operations, so rate cuts in 2024 would bring them financial relief. Potential cuts might also help business owners expand. Stocks shot up after the Fed's announcement Wednesday afternoon, and the Dow Jones industrial average closed at an all-time high. Indeed, even the hint of possible rate cuts coming next year made Wall Street giddy. Also, a cut could lead businesses to increase spending and investments, which would in turn cause stock prices to rise. Boosting businesses and stocksĬuts would also make it easier for businesses to take out loans, which would be significant for many business owners who have struggled in the past year due to high inflation and interest rate hikes. It would also make new fixed-rate mortgages more affordable for those looking to buy a home in 2024 and beyond. The same idea generally applies to mortgages - while a cut would not impact existing fixed-rate mortgages, adjustable-rate mortgage payments would decrease. If they do happen, it'll become cheaper for Americans to borrow money and impact their financial lives in several ways:Ĭredit cards with variable interest rates would translate to lower monthly payments for the credit-card holder. While Powell noted that the interest rate cut projections are subject to change, he said the economy is moving in the right direction. It often indicates a user profile.Ĭheaper mortgages and credit card payments Account icon An icon in the shape of a person's head and shoulders.
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