Since last fall, when the Federal Reserve signaled it might be finished with interest rate hikes, a broad spectrum of stakeholders from Wall Street traders and economists to car buyers and prospective homeowners have been keenly focused on the potential for rate cuts. Amid ongoing inflation concerns that remain above the Fed's target, Federal Reserve Chair Jerome Powell hinted at possible rate reductions in 2024 if the economy evolves as expected, despite a glacial inflation slowdown. This speculation has led to varied predictions among traders, with some expecting as many as seven cuts earlier in the year, though now the consensus leans towards one or two quarter-point reductions. Contrarily, Larry Summers warns that a rate cut in the June meeting could be premature, citing recent job gains that suggest the economy may be re-accelerating and that the neutral rate could be far higher than what the Fed has factored in.