How many interest rate cuts will we see in 2024?
In its December revision of its Dot Plot projections for interest rates in 2024, the median projection by the U.S. central bank’s staff and policy makers estimated three interest rate cuts by the end of 2024. The market, which had been hoping for exactly this news, cheered, and stocks moved to record or near record highs. And in reaction to the Fed’s news, Wall Street moved its forecasts to match the new projection. Barclays, for example, is calling for three cuts in 2024 and JPMorgan Chase moved its forecast for the start of cuts to June. But, on Wall Street nothing exceeds like excess so projections are pushing beyond the Fed’s median view.
