top of page

Federal Reserve Rates

Many portfolio managers have suggested that the Federal Reserve needs to lower interest rates at least five times in 2024 to prevent the U.S. economy from entering a recession. They argued that the Federal Reserve is lagging in rate reductions and, to avoid a prolonged tightening cycle, it must deliver multiple cuts. Currently, the U.S. policy rate is at its highest in 22 years, ranging from 5.25% to 5.50%. Traders are anticipating a 25 basis point cut as early as March 2024. However, many have stated that it's too early to declare victory over inflation, dampening expectations for rate cuts. Despite easing price pressures, it is emphasized that the intention is to maintain a restrictive policy until convinced that inflation is returning to the target of 2%. 

The Federal Reserve's possible interest rate cuts, proposed by portfolio manager Paul Gambles, may indirectly affect high school students. If successful, these actions could increase job opportunities, make student loans more affordable, and influence family finances, potentially impacting support for education and extracurricular activities. The interconnected nature of economic decisions highlights the potential repercussions on various aspects of high school students' lives.


By: Jacob Wigoda (11th)

3 views0 comments

Recent Posts

See All
bottom of page