Fed Officials Signal Three Rate Cuts in 2024, Await Further Inflation Data

Despite some Fed officials advocating for rate reductions, concerns over recent inflation figures prompt a cautious approach.

Two Federal Reserve officials, including San Francisco Fed President Mary Daly, indicate a baseline expectation of three rate cuts in 2024, citing no immediate urgency.
Cleveland Fed President Loretta Mester emphasizes the need for more inflation data before proceeding with rate cuts, highlighting recent higher-than-expected inflation readings.
Fed officials broadly agreed in March to potentially start reducing rates in 2024, with the median projection suggesting three cuts.
Investors and bond markets react to the Fed's stance, adjusting expectations for the number and timing of rate cuts.
Recent inflation data, showing a rise in core personal consumption expenditures, raises concerns among Fed officials about the pace of disinflation.