Key Takeaways:
- Interest rates will drop slightly.
- Inflation will move toward the 2% target.
- White-collar jobs will increase.
- We may go into a mild recession.
- The housing market won’t improve.
- Low- to moderate-income households will feel squeezed.
Are you wondering what to expect on the personal finance front in 2024?
After a tumultuous two years, the economy is showing signs of stability, but we’re not out of the woods yet.
Here are six 2024 predictions from financial experts:
1. Interest Rates Will Drop
In December, the Federal Open Market Committee (FOMC) announced that the federal funds rate may be at its peak for this cycle and shared that the first decrease may come in June 2024.
“I think we may see some relief, but we won’t get down to the rates we experienced a few years ago,” Regina McCann Hess, certified financial planner, certified divorce financial analyst and president of Forge Wealth Management, said in an email.
She explained that the definition of high rates is relative: “Many of us can remember average interest rates of 6% to 7% that spanned multiple years. That was our normal. Within the past few years, many took advantage of the low 3% to 4% rates and can’t fathom going back to those higher rates. If we’re lucky, we could land somewhere in between.”
For those who are looking to take advantage of the high rates, now is…
