"Anticipating the Impact: Fed Rate Cuts Expected in 2024 Amid Economic Downturn"
TL;DR
UBS chief US economist Jonathan Pingle predicts the Federal Reserve will cut interest rates below 3% by December 2023, starting with a quarter-point cut in March. This is in anticipation of a mild recession driven by a pullback in consumer spending, leading to a "soggy 2024." Pingle's forecast suggests a more aggressive easing of monetary policy than current market expectations and the Fed's own projections, as he expects a slowdown in the economy and cooling inflation to prompt the Fed to act to prevent worse economic outcomes.
- Fed will cut rates under 3% as a mild recession leads to 'soggy 2024' Business Insider
- Central banks poised for rate cuts in 2024, investors and economists predict Financial Times
- The Fed Is Set To Slash Rates In 2024. But Let's Get Real. Investor's Business Daily
- Higher forever? Markets see few rate cuts after 2024 Reuters
- If the Fed Cuts Interest Rates in 2024, What Happens to My Savings Account APY? The Motley Fool
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