The Federal Reserve decided NOT to raise rates again yesterday, December 13th. Some feel that J. Powell’s comments signaled that they would consider lowering rates prior to inflation hitting the 2% level the Fed is hoping for. No specific timing for that was offered. The Dow hit a high point while Chair Powell spoke. It is still holding over 37,000, the highest it has ever been. So we have a pause now at least until the next Fed meeting in January. Likely rates will begin to drop in 2024. The question is when. Some experts are estimating they will start dropping rates as soon as March of next year. Some feel it won’t begin until the end of 2024. I suppose we will see.
