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.
TRADERS LEAN TOWARD TWO QUARTER-POINT FED RATE CUTS IN 2024
Traders Lean Toward Two Quarter-Point Fed Rate Cuts In 2024 - BBG https://t.co/0iUUfPhmWB
Traders started the year predicting as many as seven rate cuts. Now, many are betting on one or two—or none. https://t.co/hv1jpJ1Rbp https://t.co/hv1jpJ1Rbp
Traders betting the European Central Bank is all but certain to start cutting interest rates in June just need a green light from policymakers on Thursday that the coast is clear. More here: https://t.co/4VRrpVmLA0
Larry Summers Says There's Still A 'Real Possibility' Of A Fed Move Higher: 'Would Be An Inappropriate Act To Cut Rates' At June Meeting March job gain suggests economy is re-accelerating, suggesting neutral rate could be far higher than what the Fed has factored in: Summers… https://t.co/7AKe9mYQ5x
Fed Chair Powell reiterated his prediction for cuts in 2024 on Wednesday, saying, "If the economy evolves broadly as we expect, most FOMC participants see it as likely to be appropriate to begin lowering the policy rate at some point this year." https://t.co/phIdJcG5df
🌎 #Weekahead | Glacial Inflation Slowdown Set to Back Fed Rate-Cut Caution - Bloomberg https://t.co/d4n3OWkKHZ https://t.co/HIgCldGz6B
Ever since the Federal Reserve signaled last fall that it was likely done raising interest rates, Wall Street traders, economists, car buyers, would-be homeowners — almost everyone — began asking the same question: When will the Fed start cutting rates? https://t.co/YejsQiS4cU
ICYMI: Jerome Powell hints at potential rate cuts amid ongoing inflation concerns. Despite some moderation, inflation remains above the Fed's target, posing economic stability challenges. Find out more: ↓ https://t.co/K1JN47QRZy
Ever since the Federal Reserve signaled last fall that it was likely done raising interest rates, Wall Street traders, economists, car buyers — pretty much everyone — began obsessing over a single question: When will the Fed start cutting rates? https://t.co/viweZAFDT6