Life Without 2024 Rate Cuts And The Potential Market Reaction

3 min readMay 16, 2024

Imagine you’re sipping your favorite coffee and scrolling through the latest financial news…when suddenly, headlines start buzzing about a potential rate cut from the Fed. This could be big! Traders know that this kind of news can shake up the markets as well as their personal finances. Interest rates impact everything from mortgage costs and credit card interest to returns on savings accounts, all of which can influence our buying decisions.

Watch the video below to learn about the implications of possible 2024 rate cuts, or stable rates for the year ahead, on the U.S. economy and various markets including futures, equities, bonds, and real estate. As we navigate through the second half of 2024, the financial landscape presents new challenges for the FOMC and will likely influence its possible decision to hold interest rates steady for the next several months.

Additional topics discussed in this free livestream:

  • Why the FOMC is signaling a potential delay in 2024 rate cuts
  • The role of the Fed in the U.S. economy
  • Three key factors that help determine Fed policy

All Eyes On The Fed For Decision On 2024 Rate Cuts (Or Will They Remain Unchanged)?

Through the Federal Open Market Committee (FOMC), the Fed plays a key role in setting U.S. monetary policy, primarily by setting the federal funds rate — the interest rate at which banks lend money to each other overnight.

The decisions made by the FOMC are critical to managing inflation, stabilizing U.S. currency, and promoting a favorable economic environment. These decisions are guided by a range of economic indicators and concepts that help the FOMC gauge the health of the economy. Among these, three top metrics stand out due to their significant influence on policy decisions: inflation measures, the unemployment rate, and GDP growth figures.

  • Inflation measures: The Fed pays close attention to inflation metrics, notably the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) Price Index. The Fed’s inflation target is around 2%, and these indicators help assess whether prices are rising too quickly. If inflation is above the target, the Fed might consider raising rates to cool down consumer spending and business investment.
  • Employment situation: The U.S. unemployment rate is a key indicator of labor market health and overall economic activity. A lower unemployment rate typically suggests that the economy is strong, which might lead to wage growth and potentially higher inflation. Conversely, a higher unemployment rate might indicate economic weakness, prompting the Fed to lower interest rates to stimulate job creation and economic growth
  • GDP growth: Gross domestic product (GDP) growth reflects the total output of goods and services in the U.S. economy, providing a broad measure of economic activity and health. Rapid GDP growth might prompt the Fed to raise interest rates to prevent the economy from overheating and triggering inflation. On the other hand, slow or negative GDP growth could lead to rate cuts to encourage borrowing and business investment.

By monitoring these metrics, the FOMC tries to achieve a balance between encouraging economic growth, controlling inflation, and keeping people employed, fulfilling its mandate of promoting a healthy, sustainable U.S. economy.

We’re Live Every Trading Day

Prep for the trading day ahead, analyze the markets in real time, and explore our award-winning platform during our daily livestream. Watch live here or catch what you missed on our YouTube channel.

Trade Futures With NinjaTrader

Haven’t signed up for your free NinjaTrader account yet? Get started today with a 14-day trial of live simulated futures trading.

This article was originally published on




NinjaTrader is an industry-leading trading platform and futures broker supporting over 1 million users globally. Risk Disclosure: