FED SIGNALS THREE RATE CUTS IN 2024
How has the Fed’s shift impacted the outlook for the stock market? According to the Wall Street Journal:
“Federal Reserve officials are penciling in roughly three quarter-point interest-rate cuts next year. That’s half a percentage point lower than in their quarterly forecast from September. Policy makers expect to cut rates because inflation is slowing—and without a substantial rise in unemployment. Here’s what Fed officials are projecting: Inflation (core PCE, their preferred measure) falling to 2.4% next year. That’s down from the previous forecast of 2.6%. Growth (real gross domestic product) at 1.4% in 2024, revised down from 1.5%. Fed-funds rate at 4.6%, down from the previously projected 5.1% and roughly 0.75 point lower than the current level. Bond yields are plummeting in response as prices rise.”
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