From Barchart:



The article discusses the decline in the U.S. PCE deflator, which is the Federal Reserve’s preferred measure of inflation. This decline has led to market expectations for Fed rate cuts in 2024. However, the article questions whether the market’s expectations for a 1-1/2 percentage point rate cut are justified. The markets are expecting a 25 basis point (bp) rate cut, but the article suggests that the actual amount of rate cuts will depend on various economic factors. It highlights the uncertainty surrounding the extent of future rate cuts and the potential impact on the economy. In summary, the article emphasizes the market’s anticipation of Fed rate cuts in 2024 based on the decline in the PCE deflator, but also warns that the actual rate cuts may vary and depend on economic conditions.



Original: There Will Be Fed Rate Cuts in 2024, But By How Much?