Fed officials are now considering fewer rate cuts this year

Americans facing high borrowing costs on car loans, mortgages, and credit cards may not see any relief this year. Federal Reserve officials are reconsidering their previous forecasts of three rate cuts in 2024 due to concerns over inflation. While some officials believe rates will remain above 5% for the year, others anticipate one or no rate cuts. The timing of the rate cut will depend on inflation gauges and economic data. Rising housing costs and gas prices have contributed to higher consumer prices and inflation concerns. The Fed is cautious about cutting rates too soon or too late to manage inflation and avoid a potential recession.