March 20, 2024 — Today, the Federal Reserve Board announced that the federal funds rate will remain at 5.25%-5.50%, making this the 5th straight FOMC meeting without a rate hike or rate cut.
At this time, analysts anticipate the initial rate cut may occur over the summer, and additional cuts are anticipated. We will likely see approximately three rate cuts by the end of 2024, and continued rate cuts thereafter.
According to the Summary of Economic Projections (SEP), which reports each Fed member’s expectations for key economic factors, the median expectations show federal funds rates at 4.5%-4.75% at the end of 2024, and at 3.75%-4.0% by the end of 2025.
While recent data suggests inflation is nearing the Federal Reserve's target of 2%, the Fed remains cautious. Although both January and February's CPI reports were higher than anticipated, inflation has continued a downward trend and is at a lower rate than January and February 2023. The Fed has indicated they need to be more confident in this trend before reducing interest rates. They will continue to monitor data to correctly target rates without being overly ambitious for cuts nor waiting too long and increasing the likelihood of a potential economic recession.
Get ahead of these anticipated cuts and beat the competitive acquisition market by actively pursuing acquisition opportunities now. Business owners who are waiting to acquire only after the rates drop will be left behind. Pursue strategic growth opportunities as they arise and take advantage of variable rate financing to optimize the value of your acquisition. With a variable rate loan, you can seize opportunities now while keeping the door open to potentially lower rates down the road. Trying to time the ‘lowest’ cost of debt is typically not a prudent business decision, as it can result in losing out on growth opportunities. So, for business owners who want to capitalize on growth opportunities, now is an opportune time to consider variable financing for inorganic growth.
About Oak Street Funding
Indianapolis-based Oak Street Funding, a First Financial Bank company, provides customized financial solutions for businesses in various industry sectors and third-party loan servicing for financial institutions. Oak Street Funding incorporates industry knowledge, easy-to-use technology and exceptional employees to deliver top-quality service and capital products to niche businesses nationwide. With in-house sales, underwriting, and servicing teams, and direct access to the CEO and executive team, Oak Street Funding is well-positioned to meet lending needs of borrowers in all stages of the business life cycle.
Media Contact:
Rae Hostetler
Hostetler Public Relations
Representing Oak Street Funding
317-733-8700
Rae@HostetlerPR.com
