Looking ahead, the Fed expects to make further rate cuts— possibly another 0.50% in 2024 and 1.0% more in 2025. Additionally, the Federal Reserve now expects the unemployment rate to rise to 4.4% in 2024, and inflation to come down to 2.3%.

Inflation might actually fall too far, the Fed governor says, opening the door wider for more half-point interest-rate cuts.

The Federal Reserve recently cut rates for the first time in more than four years. But this could be just the beginning. Find out what you need to know.