The Federal Reserve signaled no rate cuts coming in March 2024. The speaker breaks down what the Fed's cautious stance means for mortgage rates and when inflation data might finally push them to act.
The Fed talked interest rates today, so let's unpack it. Last month they got together, they were pretty warm and fuzzy about multiple rate cuts of 2024. As the mortgage market loved it today, they were a little bit more stubborn. They see that quarter three of 2024 was right at the 2% inflation target, which is great, but they want to see the yearly inflation target hit 2%. Right now it's at 3%. It's been rapidly recovery but not quite there. But we've talked before that quarter one of 2023 was the last three months of really ugly inflation. So as we make our way through quarter one of 2024, we'll start to see those bad months fall off and be 5 feder months in 2024 bringing the yearly inflation level down. The Fed just wants to make sure that when they lower their rates the economy doesn't go overboard again and overspend and increase inflation. The next fed meeting is 3-19-20 so hoping in the next month and a half we'll have better data to support Fed rate cuts.
