Here's When the Fed Might Cut Interest Rates Again, and What It Means for the Stock Market
The US Federal Reserve has cut interest rates six times since September 2024, but may not cut again until 2027 due to conflicting goals of controlling inflation and maintaining full employment. The uncertainty is affecting the stock market, with the S&P 500 index losing over 6% of its peak value.
The US Federal Reserve has cut interest rates six times since September 2024. However, the core personal consumption expenditures price index is now increasing, while the job market is showing signs of weakness. The Fed's dual mandate is in conflict, making it difficult to decide on the next interest rate move. The Fed's quarterly Summary of Economic Projections report shows policymakers are struggling to agree on the direction of interest rates. The stock market is already experiencing a sell-off, with the S&P 500 index losing over 6% of its peak value. The Fed's next move is uncertain, with some predicting no interest rate cuts until 2027.
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