As soon as a meeting of the US Federal Reserve finishes, investors are searching their calendars to prepare for the next one. This has never been more true than in 2024, when each meeting has been met with the expectation of interest rate cuts, which are yet to materialise.
In June, the Fed kept interest rates unchanged for the seventh time in a row.
Its chairman Jerome Powell has noted the “modest further progress” the Fed has made in taming inflation but admits there is still work to do to reach the target. The Fed’s preferred inflation metric fell to 2.6% in June, down from its 7.1% per cent peak in 2022. Nonetheless, the figure remains above its long-term 2% goal.
In its latest prediction, the Fed has estimated it will implement just one quarter-point cut coming before the end of 2024, a significant change from the three cuts it forecasted in March. So, when are the next meetings scheduled for?
Fed meetings for 2024
- July 31
- September 18
- November 7
- December 18
The Fed has kept its target rate unchanged at 5.25% to 5.50% since July 2024. Central banks in the UAE and Saudi Arabia have also held interest rates steady since then.
Unlike other central banks, the Fed has a dual mandate of price stability and maximum employment. In its latest press conference, Powell noted that the organisation is conscious of the cooling labour market, stressing that the US unemployment rate unexpectedly rose to 4.1% in May, marking the third straight month in which the unemployment rate increased
