RE:RE:Dovish Fed The Federal Reserve maintained its benchmark interest rate on Wednesday in a range of 5.25%-5.50%, the highest in 22 years, but signaled it will likely cut interest rates by a total of 75 basis points, or 0.75%, in the year ahead.
In September, the Fed's forecasts had suggested the central bank would cut interest rates by 0.50%. The Fed has moved in 25-basis-point increments over the last year, indicating the central bank now expects to cut interest rates three times in 2024.
These projections come as the central bank now expects inflation to fall to 2.4% next year — down from 2.5% forecast in September — and drop further to 2.2% by 2025.
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While the situation is slightly different in Canada, one would expect the overall trends to be similar.
The "Canada 5 year" bond rate closed trading today at 3.33%, the lowest level since May.