Fed’s Unified Front: Rate Cuts Likely Delayed Until Fall 2024

The Federal Reserve appears increasingly united in delaying interest rate cuts until late 2024, with even traditionally dovish members now advocating patience.

Christopher Waller, a Trump appointee to the Fed, believes the economic impact of proposed tariffs won’t be clear until the second half of 2024.

Markets have adjusted expectations accordingly, with almost no chance of a May cut and declining probability for June.

Most economists now predict the first cut will come in September or October, particularly as officials want to avoid making “pre-emptive moves” without clear evidence of economic necessity.