Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Published: Apr 11, 2024 6 min read

Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.

House of cards with a percentage sign on top
Money; Getty Images

The latest inflation data was a setback for hopes of an interest rate cut at the Federal Reserve’s June meeting.

Analysts at major banks changed their forecasts for the timing of interest rate cuts after the March consumer price index (CPI) report showed inflation accelerated to an annual rate of 3.5%.

The hot CPI reading was driven by cost increases in March for things including car insurance and medical care. Meanwhile, increases in shelter prices accounted for more than 60% of overall annual inflation.

The Fed uses interest rate hikes as a means of slowing the economy to battle inflation, and it is likely to lower rates only when inflation is in check. Previously, many on Wall Street were expecting three quarter-point interest rate cuts in 2024, and that aligned with the most recent projections from Fed officials released on March 20. Now, optimism is waning in terms of how soon Fed will cut interest rates will be cut, as well as how many cuts there will be this year.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Unlock the Best Interest Rate for You
New Loan Type
Loan Amount

Find Your Actual Rate at Rocket Mortgage (NMLS #3030) Today!

View Rates
Interest rate estimates for:
Poor/Fair Credit
7.37% - 9.08%
Good/Very Good Credit
6.96% - 8.6%
Exceptional Credit
7.01% - 7.65%