Federal Reserve Chair Jerome Powell has indicated that there will be only 3 interest rate cuts in 2024, a reduction from the previously expected 6 cuts. However, prediction markets now show just 4 rate cuts for 2024, down from the initial 6. The odds of interest rate cuts beginning in March 2024 have also decreased. Traders are adjusting their expectations based on Powell's statements and market dynamics, with some expressing skepticism about the impact of the projected rate cuts on investors.
"If it really is only going to be 3 rate cuts in 2024, that is certainly not going to cause investors to run a victory lap at all. For you to say to them oh we’ll be at 4.5% by the end of the year that has nothing to do the 0% they’re asking for …" https://t.co/MH5BhF5duF
From the @FT article, "Traders abandon hopes of March interest rate cut but keep betting against Federal Reserve: US central bank chair sees three reductions in 2024 while markets price in five." #economy #markets #centralbanks #federalreserve #investing #investors #econtwitter https://t.co/tKecPoCR1V
When will the Fed cut rates? More data needed, Powell says https://t.co/oNfcdpfyA9 https://t.co/xsrc4IfX2N
Powell Says Only 3 Rate Cuts In 2024—But Market Still Doesn't Buy It https://t.co/sRZiKQPXru https://t.co/IjPBZGrfh6
That was quick: Prediction markets are now showing just 4 interest rate cuts in 2024, according to @Kalshi. Just one month ago, prediction markets were pricing-in 6 interest rate cuts in 2024. Meanwhile, odds of interest rate cuts beginning in March 2024 have gone from 90% to… https://t.co/Dcwju2dKmt