Fed Closes 2023 FOMC Meeting Slate With No Rate Hikes

A tentative timeline toward rate cuts in 2024 was revealed in the updated Summary of Economic Projections.

  • The Federal Reserve (Fed) elected to not raise the federal funds rate at the December 2023 Federal Open Market Committee (FOMC) meeting.
  • It is the third consecutive meeting during which the central bank has chosen to hold interest rates steady.
  • The federal funds rate target range remains 5.25%-5.50% and the Fed's cumulative total increase sits at 525 basis points (bps) since March 2022, with a total increase of 100 bps occurring in 2023.
  • In its updated Summary of Economic Projections (SEP) and dot plot, the central bank indicates it is expecting to cut interest rates three times in 2024.

Markets reacted very favorably to the news emanating from the Fed’s December 13, 2023, FOMC meeting. The central bank elected to hold the federal funds rate steady for a third consecutive meeting, while also setting a course toward rate cuts in 2024, with three penciled into its updated dot plot.