• Federal Reserve officials left interest rates unchanged in their final policy decision of 2023 and forecast that they will cut borrowing costs three times in the coming year, a sign that the central bank is shifting toward the next phase in its fight against rapid inflation.
• Interest rates are now set to a range of 5.25 to 5.5%, where they have been since July.
• Powell says that one reason inflation has come down without a recession is that the causes of inflation were different this time than in some past historical episodes: “This inflation was not the classic demand-overload, pot-boiling-over scenario that we think about.”
• Fed officials forecast roughly three rate cuts of a quarter-point each next year, more than they predicted when the Fed met back in September.
• While the committee is proceeding carefully, rates are projected to drop to 4.6% by the end of 2024 if the economy evolves as projected. Another recent forecast also suggested that the Fed could cut interest rates by 0.50% in the coming year, thanks to falling inflation and a slowing labor market.

Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.