Fed rate cuts to remain in view for 2024, even as rate-setters shift

FILE PHOTO: A cyclist passes the Federal Reserve building in Washington, DC, U.S. REUTERS/Chris Wattie/File Photo/File Photo

SAN FRANCISCO: The annual rotation on the U.S. Federal Reserve’s interest-rate-setting committee means its 2024 voting members lean slightly more hawkish than the outgoing group from 2023 - but that won’t budge the outlook for a pivot to interest-rate cuts next year.

In fact, plenty of analysts make the opposite argument: if inflation continues to fall more quickly than expected, Fed policymakers will want to reduce rates even more than the three-quarters-of-a-percentage point implied in fresh projections published last week.