Goldman Sachs Chief Economist Jan Hatzius stated that the Federal Reserve is on track for a soft landing and suggested that a rate cut in March would be appropriate. Market expectations indicate a potential rate cut in the second quarter, with some economists forecasting cuts in June or May. Former St. Louis Fed President James Bullard anticipates rate cuts as early as March, while Morningstar's chief US market strategist David Sekera believes the economy will soften but sees only a 25% probability of a recession. Market expectations for the Fed Funds Rate path suggest potential cuts to 3.33% by January 2026.
Market expectations for Fed Funds Rate path: -Jan 31, 2024: Pause -Mar 20, 2024: Pause -May 1, 2024: 25 bps cut to 5.00-5.25% -June 12, 2024: 25 bps cut to 4.75-5.00% -July 31, 2024: 25 bps cut to 4.50-4.75% -Sep 18, 2024: 25 bps cut to 4.25-4.50% -More cuts to 3.33% by Jan 2026 https://t.co/RSi6tQxhiV
🔴 EFFECTIVE FED FUNDS RATE 5.33% JANUARY 23RD VS 5.33% JANUARY 22ND.
🔴 SECURED OVERNIGHT FINANCING RATE 5.31% JANUARY 23 VS 5.31% JANUARY 22.
Taylor Rule Points to a Fed Cut in March: https://t.co/bFw2s4cpdv
Taylor rule suggests fed funds rate should be 4.5%, pointing to Fed rate cut in March. via Apollo’s Slok https://t.co/2H2X46TKFr
⚠️ INVESTORS TEMPER US RATE CUT BETS AS FED MEETING LOOMS (Reuters) A strong U.S. economy and pushback from central bank officials is leading some investors to rethink their bets on how quickly the Federal Reserve will cut rates this year, a shift that is rippling through… https://t.co/CuUCi59DRx
“We do expect that the economy is going to soften,” Morningstar chief US market strategist David Sekera says. “We are in the soft landing camp. We’re not looking for a recession. We think it’s probably only a 25% probability.” https://t.co/MVHj7g3QLb
(WSJ) -- Former St. Louis Fed President James Bullard said he expects the Federal Reserve to begin lowering interest rates before inflation hits 2%, and that cuts could come as soon as March. @DionRabouin @WSJ #FOMC https://t.co/MggNwDhIkH
The U.S. Federal Reserve will wait until the second quarter before cutting interest rates, per Reuters.
$GS CHIEF ECONOMIST: #FED IS ON ITS WAY TO ACHIEVING A SOFT LANDING
REUTERS POLL-FEDERAL RESERVE TO CUT #FED FUNDS RATE IN Q2, SAY 86 OF 123 ECONOMISTS; 55 SAY IN JUNE, 31 SAY MAY
🔴 POLL: FEDERAL RESERVE TO CUT FED FUNDS RATE IN Q2, SAY 86 OF 123 ECONOMISTS; 55 SAY IN JUNE, 31 SAY IN MAY.
🔴 POLL: FED TO CUT RATES BY 100 BPS OR LESS IN 2024, ACCORDING TO 72 OF 123 ECONOMISTS.
🔴 EFFECTIVE FED FUNDS RATE 5.33% JANUARY 22 VS 5.33% JANUARY 19.
From the @FT’s latest article on the @ECB. I agree with the view that the central bank will be careful in the immediate to initiate a rate cutting cycle. It will be particular sensitive to the possibility of some renewed inflationary pressures — a risk that is amplified by the… https://t.co/LUYcH2YmTG
From the @FT’s latest article on the @ECB. I agree with the view that the central bank will be careful in the immediate to imitate a rate cutting cycle. It will be particular sensitive to the possibility of some renewed inflationary pressures — a risk that is amplified by the… https://t.co/dk0F7blrFW
🔴 SECURED OVERNIGHT FINANCING RATE 5.31% JANUARY 22 VS 5.31% JANUARY 19.
Fed Rate Cut Looks More Distant, But Soft Landing’s on Track. Here’s Why. https://t.co/oR20ODmUMB
The Federal Reserve is on track to achieve a soft landing, Goldman Sachs Chief Economist Jan Hatzius said, adding that a March rate cut "would make sense" https://t.co/fl1jm8ehJK