Federal Reserve officials are pushing back against market expectations of aggressive rate cuts in 2024, despite a recent dovish turn by the Fed. Wall Street banks have been readjusting their interest rate predictions for 2024, reflecting a more cautious stance on monetary easing. Goldman Sachs, in particular, has raised its year-end 2024 S&P 500 index target to 5100, citing decelerating inflation and potential Fed easing as factors that could keep markets buoyant. However, Fed's Austan Goolsbee has emphasized that it is too early to declare victory in the central bank's inflation fight, signaling a more measured approach to rate adjustments. Meanwhile, Bank of America now expects the Fed to deliver four 25bps rate cuts across 2024, while Goldman strategists anticipate cuts starting as early as March. The market's response to these mixed signals has been significant, with Asian stocks falling as investors recalibrate their expectations. The Fed's cautious messages come amidst a backdrop of solid growth projections and declining inflation, which some analysts believe could lead to a favorable environment for risk assets. Morningstar has identified the 136 best stocks to buy in 2024, Jefferies has named its top global stocks with over 60% upside, and Goldman has cut its 2024 Brent price forecast due to strong US supply. Additionally, BofA Global Research now expects 152 global rate cuts in '24, with a significant easing of financial conditions leading to a market rally into the new year.
goldman is out here with the rate cuts US starting in March, EU in April, significant stimulus in China, etc etc LIRP for the people https://t.co/dwIxN6CkBR
Bank of America reveals its 4 top biotech picks for 2024 — and gives one 166% upside https://t.co/1lbhj91eKG
Bank of Canada Governor Tiff Macklem said he expects to start cutting interest rates next year but needs to see several months of sustained downward momentum in core inflation first https://t.co/R56ROhXs9j
Bank of Canada Governor Tiff Macklem said he expects to start cutting interest rates next year but needs to see several months of sustained downward momentum in core inflation first https://t.co/rwfunX0wU3
Thanks for the nice shout out by Business Insider Oracles of Wall Street: 13 economists, strategists, and analysts who nailed their calls this year — and their highest-conviction predictions for 2024 https://t.co/GKaM9i7qsk via @businessinsider
Bank of Canada Governor Tiff Macklem said he expects to start cutting interest rates next year but needs to see several months of sustained downward momentum in core inflation first https://t.co/5Ld7Nwhn1j
🔴 BOC'S GOV. MACKLEM: I SEE THE BOC CUTTING OVERNIGHT RATE IN 2024.
🇺🇸 FED'S DALY: RATE CUTS MAY BE NEEDED NEXT YEAR TO PREVENT OVERTIGHTENING -WSJ San Francisco Federal Reserve Bank President Mary Daly said Monday that cuts to the U.S. central bank's benchmark rate are likely be appropriate next year because of an improvement in inflation this… https://t.co/JG3iNVOYWG
*FED'S DALY SAYS THREE RATE CUTS COULD BE NEEDED IN 2024: WSJ gotta pump up those approval ratings
WSJ News Exclusive: Rate cuts may be needed in 2024 to avoid over-tightening, a Federal Reserve official tells WSJ, saying bringing down inflation shouldn’t come at the expense of jobs https://t.co/d908Kfwv15
What a difference 2.5 weeks make: Nov 30: FED'S DALY: I'M NOT THINKING ABOUT RATE CUTS AT ALL RIGHT NOW Dec 18: FED'S DALY: THREE RATE CUTS COULD BE NEEDED IN 2024 TO AVOID OVER-TIGHTENING
S&P 500 Likely To 'Test The 5,000 Level': JP Morgan On Where To Allocate In 2024 https://t.co/J5vf0nylWV
🔴 FED'S DALY: MORE CUTS COULD BE APPROPRIATE IF INFLATION FALLS FASTER.
🔴 FED'S DALY: MY ECONOMIC PROJECTIONS WERE VERY CLOSE TO THE FOMC MEDIAN - WSJ.
🔴 FED'S DALY: FEWER CUTS WOULD BE WARRANTED IF INFLATION PROGRESS STALLS.
🔴 FED'S DALY: THE FED SHOULD AIM TO MINIMIZE JOB MARKET DISRUPTIONS IF INFLATION KEEPS FALLING - WSJ.
SF Fed President Mary Daly says it’s appropriate to shift to a more balanced focus on the dual mandate. “We have to be forward looking and make sure that we don't give people price stability but take away jobs.” https://t.co/VKOWmxIjob
BlackRock’s Rick Rieder said that market expectations for the Federal Reserve to begin cutting interest rates in March are likely too early https://t.co/GN9GVhtr8y via @markets
Bond yields are retreating, and that bodes well for these cheap income-paying stocks in 2024 https://t.co/I1pQMqwqcR
A top Fed official warns markets have gotten ahead of themselves in their enthusiasm for rate cuts in 2024 https://t.co/4BLShUqlQf
Financial markets went wild last week after communications out of the Fed suggested multiple rate cuts are on the way next year. Fed officials noticed and appear to believe the reaction was overblown. https://t.co/2lb98A6mea
The market is currently pricing in 6 rate cuts of 25BPs in 2024 - CME FedWatch Tool https://t.co/lV2OM7DGE5
Goldman sharply shifts stocks forecast after Fed's policy pivot https://t.co/a8kxFeDWJR
🇺🇸 Goldman strategists expect the Fed to cut rates by 25 basis points at its March, April and May meetings, followed by quarterly cuts that will bring benchmark rates down to a range between 4% and 4.25% by year-end from the current range of 5.25% to 5.5%. https://t.co/ATizWItmzU
The quick case for a weird 2024 in stock markets https://t.co/qenMzbfCnY
Goldman Sachs boosts 2024 S&P 500 target on increased confidence for Fed rate cuts in March https://t.co/OhayAo3de4 by @_JoshSchafer
BANK OF AMERICA NOW EXPECTS THE FED TO START CUTTING INTEREST RATES IN MARCH BANK OF AMERICA ALSO NOW EXPECTS 4 RATE CUTS OF 25 BPS EACH NEXT YEAR UP FROM 3 BEFORE
⚠️ JUST IN: *BOFA GLOBAL RESEARCH NOW EXPECTS THE FED TO DELIVER FOUR 25BPS RATE CUTS IN MARCH, JUNE, SEPTEMBER, AND DECEMBER 2024 https://t.co/rCi7qEJ5ie
Goldman trims its 2024 oil-price forecast as the US keeps pumping up supply https://t.co/i4mnpMmKGX
Official Wall Street outlook: Here’s where strategists see the stock market going in 2024 https://t.co/PWFZablbKg
Why Goldman Sachs boosted its 2024 stock-market forecast by 9% https://t.co/Yw7djV1H46
Two more Fed officials pushed back against the depth of interest-rate cuts expected by markets next year, reinforcing similar comments from other US central bankers https://t.co/k8xHBHwd2i
Two more Fed officials pushed back against the depth of interest-rate cuts expected by markets next year, reinforcing similar comments from other US central bankers https://t.co/VxQZTJYvX7
Market reaction confused me, sez Fed's Gooslbee via @jesserpound https://t.co/e85Z5Pillj
The Fed we have: Powell: We're discussing rate cuts Williams: We're not discussing rate cuts Goolsbee: There's no contradiction
Two more Fed officials pushed back against the depth of interest-rate cuts expected by markets next year, reinforcing similar comments from other US central bankers https://t.co/9D6LZMGmK4
Fed officials are trying to push back against market exuberance unleashed by Powell. It isn’t working. https://t.co/oKKMYVQ2vV
Fed rate cuts will be even more aggressive than expected in 2024 as unemployment surges past 5%, economist says https://t.co/gK67rLQTCz
There seems to be some confusion on the FOMC on how the world works. https://t.co/g2Qzlolt3k
Price Target Increase for the S&P 500!! As 2023 wraps up, #GoldmanSachs has bumped up their PT for the #SP500 to $5,100 - which would be an 8% upside from current prices. After 23% YTD gains, what do you predict for 2024?! #stocks #stockmarket https://t.co/idaZYCYxuP https://t.co/0uUYOmmPeM
#FED'S GOOLSBEE:THERE SEEMS SOME CONFUSION IN MARKETS TO HOW #FOMC ACTUALLY WORKS
Goldman Sachs with a nice view of what rate cut expectations moving up does to their S&P 500 prediction. On the left, is how Goldman saw next year playing out as of a month ago. On the right, is the updated chart now that GS sees cuts coming in March. https://t.co/TcoU5Zy0C2
#fed *GOOLSBEE: I DON’T UNDERSTAND WHY THE FOMC IS FRONT RUNNING THE FOMC
Goldman Strategists Lift S&P 500 Forecast a Month After Setting It https://t.co/ZZKUb7TJxq
Next Fed Chair? Fed's Goolsbee says he has been 'confused' by market reaction
🇺🇸 FED'S GOOLSBEE SAYS HE HAS BEEN 'CONFUSED' BY MARKET REACTION The swift rise in financial market bets that the Federal Reserve will cut rates soon and quickly following comments by Fed Chair Jerome Powell last week has been at odds with how the rate-setting committee… https://t.co/w8yOcVpA8p
🔴 ECB'S STOURNARAS: WE NEED TO SEE INFLATION SUSTAINABLY BELOW 3% BY THE MID-YEAR BEFORE CUTTING RATES.
'The great disinflation' will set the stage for 5 Fed rate cuts in 2024, Goldman Sachs says https://t.co/XLO9KTfTvB
🔴 FED'S GOOLSBEE: WE'RE PREPARED TO ADJUST POLICY IN THE CASE OF EXTERNAL SHOCK.
Goolsbee consider as to how market reacted on Wednesday -seeing significant improvement on inflation front, but too early to declare victory -thinks Powell and Williams were consistent in comments (really?) -prepared to adjust policy in casw if external shock -economy can…
🔸 FED'S GOOLSBEE SAYS PREPARED TO ADJUST POLICY IN CASE OF EXTERNAL SHOCK
Goldman: "We now expect real GDP to grow 2.0% in 2024 on a Q4/Q4 basis and see the unemployment rate edging down to 3.6% by 2024Q4." https://t.co/KLCppvN6xe
🔴 FED'S GOOLSBEE: THE ECONOMY CAN KEEP GROWING WHILE INFLATION COOLS.
🔴 FED'S GOOLSBEE: IF WE KEEP GETTING IMPROVEMENTS ON THE SUPPLY SIDE, AND IMPROVEMENTS IN LABOR FORCE PARTICIPATION, THEN THE ECONOMY DOESN'T HAVE TO WEAKEN FOR INFLATION TO COME DOWN.
"The combination of solid growth, sharply declining inflation, easier monetary policy, and lower long-term rates is exceptionally friendly for risk asset markets" --Goldman GS lifts its S&P 500 target to 5100
🔴 FED'S GOOLSBEE: THERE'S NO CONTRADICTION BETWEEN WHAT FED'S WILLIAMS AND FED'S CHAIR POWELL SAID OVER THE PAST WEEK.
🔸 FED'S GOOLSBEE:NO CONTRADICTION BETWEEN WHAT JOHN WILLIAMS AND JAY POWELL SAID OVER PAST WEEK
*GOOLSBEE: FED SHOULDN'T ACT ON HOW IT THINKS MARKET WILL REACT but it always will
*GOOLSBEE: CONFUSED A BIT WITH THE MARKET REACTION TO WEDNESDAY so it should have gone even higher after the Fed's shock pivot to prop up certain polls?
🔸FED'S GOOLSBEE:I WAS CONFUSED A BIT WITH MARKET REACTION 🔸 FED'S GOOLSBEE:THERE SEEMS SOME CONFUSION IN MARKETS TO HOW FOMC ACTUALLY WORKS
🔴 FED'S GOOLSBEE: THERE SEEMS SOME CONFUSION IN THE MARKETS TO HOW THE FOMC ACTUALLY WORKS.
🔴 FED'S GOOLSBEE: IF WE GET INFLATION BACK INTO THE RANGE OF THE DUAL MANDATE, WE HAVE MORE SYMMETRIC CONCERNS.
🔸 FED'S GOOLSBEE:IF WE INFLATION BACK INTO RAGE OF DUAL MANDATE, WE HAVE MORE SYMMETRIC CONCERNS
Fed's Goolsbee speaking this 🌄
GOLDMAN: “.. The bevy of encouraging economic data releases this week support our upwardly revised equity market outlook. The #CPI and PPI reports this week both signaled that inflation is nearing the Fed’s target. .. In fact, by some measures the trend is already at or near 2%.” https://t.co/XV5yEoh9ze
Federal Reserve’s Loretta Mester says markets a ‘bit ahead’ of central bank on rate cuts https://t.co/clyTbhlupw
MESTER: “The markets are a little bit ahead. .. They jumped to the end part, which is ‘We’re going to normalise quickly’, and I don’t see that.” @FT #FOMC https://t.co/JYD8U1tPvG
Goldman joins Wall Street peers in predicting fresh records for the S&P 500 next year https://t.co/dLIpW1NDMA
"BofA forecasts 152 global rate cuts in '24, 1st year since 2020 cuts to outpace rate hikes." - BofA Hartnett https://t.co/bUrPXhbzNK
Goldman Strategists Lift S&P 500 Forecast a Month After Setting It - BBG https://t.co/XLUABkxCdY
GOLDMAN: “.. We raise our $SPX year-end 2024 price target to 5100 representing 8% upside .. This outcome aligns with the scenario we outlined last week, where lower inflation and dovish Fed policy allow real yields to fall. .. Our 3-month and 6-month targets are 4800 and 4900. https://t.co/O4fhSyzdhl
(Bloomberg) - Just one month after setting a 2024 target for the S&P 500, Goldman Sachs Group Inc. strategists increased their forecast as the year-end rally shows no signs of abating. $SPX https://t.co/zMksQ0AXbU https://t.co/FEhZZDxGfJ
Goldman joins Wall Street peers in predicting fresh records for the S&P 500 next year https://t.co/dMNGfqHdtl
Goldman joins Wall Street peers in predicting fresh records for the S&P 500 next year https://t.co/V4D1piZk91
🔴 BOFA GLOBAL RESEARCH NOW EXPECTS THE FED TO DELIVER FOUR 25BPS RATE CUTS IN MARCH, JUNE, SEPTEMBER, AND DECEMBER.
🔸 BOFA GLOBAL RESEARCH NOW EXPECTS U.S. FED TO DELIVER FOUR 25BPS RATE CUTS IN MARCH, JUNE, SEPTEMBER, AND DECEMBER
Goldman Sachs sees new record highs for US stocks next year, traders are defying the Fed’s caution and short-term debt is the new darling of the Treasury market Here’s what’s moving markets ⬇️ https://t.co/MlrpnZnkEI
⚠️ FEDERAL RESERVE’S LORETTA MESTER SAYS MARKETS A ‘BIT AHEAD’ OF CENTRAL BANK ON RATE CUTS Cleveland official is latest to try to calm the investor exuberance driving up stocks and bonds..... Full Story via the link in the Tweet below 👇 https://t.co/38nYT9Oa4b
🔴 FED'S MESTER: THE NEXT PHASE IS NOT WHEN TO CUT RATES, EVEN THOUGH THAT’S WHERE THE MARKETS ARE AT - FT.
2024 S&P 500 Forecasts https://t.co/CdMNpkDnHQ
Just one month after setting a 2024 target for the S&P 500, Goldman strategists increase their forecast as the year-end rally shows no signs of abating https://t.co/Z3QEkDBysp
Just one month after setting a 2024 target for the S&P 500, Goldman strategists increase their forecast as the year-end rally shows no signs of abating https://t.co/opUb60wgoV
Asian stocks fell as Fed officials push back against bets on aggressive rate cuts next year https://t.co/CyO5DylLYs
Asian stocks fell as Fed officials push back against bets on aggressive rate cuts next year https://t.co/3r5YsGL8bf
Asian stocks fell as Fed officials push back against bets on aggressive rate cuts next year https://t.co/XmyRiSq8ea
Goldman cuts 2024 Brent price forecast on strong US supply https://t.co/WdmBTSXzG3 https://t.co/j1uVIk6Nwv
⚠️ GOLDMAN CUTS 2024 BRENT PRICE FORECAST ON STRONG US SUPPLY Full Story → https://t.co/3CmWlpXKgq https://t.co/v7gJZxqvpt
The Fed is pushing back against hopes of early rate cuts—and markets are listening https://t.co/wEMlOE4kl4
The Fed is pushing back against hopes of early rate cuts—and markets are listening https://t.co/fytkub4IoT
The Fed is pushing back against hopes of early rate cuts—and markets are listening https://t.co/lsRhmKiZBG
'Goldman’s Kostin Hikes S&P 500 Target for 2024 Amid Dovish Fed' Value add.... https://t.co/M0mPRJKnpq
‘Poised to pounce’: Jefferies names its top global stocks for 2024 — giving 3 over 60% upside https://t.co/4Y1MxW5kxB
“The Fed is preparing a Biden Bailout. It has revised down inflation projections for 2023 and 2024 and is signaling upcoming rate cuts.” https://t.co/feOqok0K4u
Chicago Fed president says "too early to declare victory" on economic "soft landing" https://t.co/xfXv8J21C6 https://t.co/GUUtGmSIQN
🔸Goldman Sachs: Lifting our 12-month S&P 500 target to 5100 as inflation falls, the Fed turns dovish, and real yields plunge We raise our year-end 2024 S&P 500 index target to 5100 representing 8% upside from the current level. Decelerating inflation and Fed easing will keep…
The Fed's Austan Goolsbee said it’s too early to declare victory in the central bank’s inflation fight https://t.co/hRrGAmJ5xE via @economics
2024 is going to be the year of rate cuts.
The Fed's Austan Goolsbee said it’s too early to declare victory in the central bank’s inflation fight https://t.co/FldQvC9WzA
The Fed's Austan Goolsbee said it’s too early to declare victory in the central bank’s inflation fight https://t.co/ZpvHRq8BCs via @markets
The Fed's Austan Goolsbee said it’s too early to declare victory in the central bank’s inflation fight https://t.co/keCjSHcDWB
The Fed's Austan Goolsbee said it’s too early to declare victory in the central bank’s inflation fight https://t.co/OesAYM1uCr
Here are what Wall Street sees as the big risks to stocks in 2024 https://t.co/Dbe2yTJT1t
AI took the investing world by storm in 2023. Which stocks gain from the trend in the new year https://t.co/LmGIDMhDxY
"Data-driven" Fed policy visualized as the central bank promises to cut by 75 bps next year after the greatest easing of financial conditions ever reversed much of the market impacts of their hiking cycle https://t.co/GzIJ77Cvdi
The 136 best stocks to buy in 2024 as Federal Reserve exuberance sends the market soaring into the new year: Morningstar https://t.co/xYT8DDhHk6
Oracles of Wall Street: 13 economists, strategists, and analysts who nailed their calls this year — and their highest-conviction predictions for 2024 https://t.co/IEJw9ZM0Dz
Wall Street Banks Readjusts 2024 Interest Rate Predictions After Fed's Dovish Turn https://t.co/2gHmlHoEQO
With the Fed ready to ease, will stocks continue to rally in 2024? https://t.co/XVvfPyOKsG
Fed officials push back on talk of rate cuts early next year https://t.co/2rFnjrJecB via @business