Massive Spending May Be Death Knell for 2024 Economic Prospects, Experts Warn

Economists caution that bullishness stemming from the Federal Reserve’s rate announcement last week may be premature.

Federal Reserve Chairman Jerome Powell holds a press conference at the end of an FOMC meeting in Washington, on Dec. 13, 2023. Brendan Smialowski/AFP via Getty Images

Federal Reserve Chair Jerome Powell’s announcement at last week’s policy meeting that he planned to hold interest rates at their current levels had an immediate buoying effect on the financial markets, with the NASDAQ Composite and the Dow Jones Industrial Average hitting record highs.

The Dec. 13 announcement marked the third consecutive meeting where Fed officials have indicated their intention of keeping interest rates at present levels. Mr. Powell also alluded to the likelihood of at least three rate cuts in 2024, further stoking bullish sentiment on Wall Street.