Dow closes at record high after Fed signals it will cut interest rates in 2024

US central bank holds interest rates at 22-year high, but expects to cut rates three times next year as inflation continues to fade

Officials at the Federal Reserve expect to cut interest rates three times next year as US inflation continues to fade from its highest level in a generation. The news sparked a rally on Wall Street with the Dow Jones index closing at a record high.

Policymakers opted to hold rates steady at a 22-year high at their latest meeting, as expected, while they scrutinize the impact of their campaign to bring down price growth.