Federal Reserve sparks market rally as it signals rate cuts in 2024

5.25-5.5% hold

Eve Maddock-Jones
clock • 2 min read

The US Federal Reserve elected to hold interest rates at the current 22-year high, as it signalled potential interest rate easing in 2024.

This marks the third consecutive pause since rates reached this peak in July, and the decision came alongside new forecasts from central bank officials pointing to 75 basis points worth of cuts next year. The dovish shift sparked a rally in equity markets, with the Dow Jones index closing at a record high on the day, jumping over 1.3% from the time Powell began speaking. US inflation falls to 3.1% in November US inflation fell in line with expectations on Tuesday (12 December) to 3.1%, and in his post rates press conference yesterday (13 December), Jerome Powell, chair of the Feder...

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