As I write this early in Thursday trading, the markets are down on Wednesday’s FOMC meeting, which spelled out the Fed’s interest rate plans over the next year. For starters, investors can expect one more 25 basis-point increase in the fed funds rate.
Perhaps more importantly, the Fed signaled they wouldn’t lower rates as quickly as investors hoped. As a result, the rate is expected to end 2024 at 5.1%, 50 basis points higher than the estimate in June.
