The Federal Reserve on Wednesday afternoon will announce its third interest rate decision of 2024, but consumers aren't likely to see any near-term relief from high borrowing costs. At year start, about 9 in 10 economists had forecast that the Fed would cut its benchmark rate at its May 1 meeting. Yet shifting economic winds and stubbornly high inflation have complicated policy makers' plans.
When will the Fed cut interest rates? It's not likely to happen today, with almost 97% of economists surveyed by FactSet predicting that the Fed will stick to the current benchmark rate of 5.25% to 5.5%. At the heart of the issue is stubborn inflation, which has ticked upwards this year on higher costs for housing and gasoline, defying the Fed's efforts to tame prices. Consumer prices in March rose 3.5% on an annual basis, up from February's increase of 3.