The Federal Reserve lowered interest rates by a quarter of a percentage point on Sept. 17, the first cut in 9 months. This cut lowers the Fed’s benchmark interest rate to a range of 4.0-4.25%. Economists are largely expecting at least one, if not two, more cuts yet this year.
Today was good news as operating rates for producers and dealers’ floorplan rates should decrease,” says Greg Roberg, AgDirect vice president of sales.
Roberg says while 2 more cuts would be nice to see, he’s leaning toward one more cut being more likely, unless inflation falls further. “I believe the Federal Reserve will continue to manage toward a soft landing with interest rates and getting inflation to 2% is their focus,” he says.
According to a Farm Equipment Insider text poll, 43.3% of respondents said they could see a 1-2% bump in their year-end sales if we saw a quarter-point reduction from the Fed this week.