November 25, 2024
When will Americans see those interest-rate cuts?

When will Americans see those interest-rate cuts?


Perhaps it was always too good to be true. The big economic story of 2023 was the seemingly painless disinflation in America, with consumer-price pressures receding even as growth remained resilient, which underpinned surging stock prices. Alas, the story thus far in 2024 is not quite so cheerful. Growth has remained robust but, partly as a result, inflation is looking stickier. The Federal Reserve faces a dilemma about whether to start cutting interest rates; investors must grapple with the reality that monetary policy will almost certainly remain tighter for longer than they had anticipated a few months ago.



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