The Federal Open Market Committee voted to hold target interest rates at a range of 5.25-5.50% and indicated rate cuts are on the table in 2024.
Rate Decision: The Fed has voted to hold the federal funds rate at its current range—a 22-year high—for three consecutive meetings. Its last increase was in July, a 25-basis-point bump that concluded a string of 11 rate hikes going back to March 2022.
2024 Projections: In an updated economic outlook, the Fed projected a median federal funds rate of 4.6% next year, indicating three quarter-point rate cuts in 2024. The Fed also raised its expected 2023 change in the gross domestic product and lowered its projected rate of inflation from its September projections.
