"DB economists predict 175 basis point Fed cuts in response to US recession"

Economists at Deutsche Bank project that the Federal Reserve will cut rates more aggressively than currently expected, with 175 basis points in rate cuts projected for 2024, as a mild recession is anticipated in the first half of next year. The bank expects two quarters of negative economic growth, leading to a rise in the unemployment rate. Deutsche Bank anticipates an initial cut of 50 basis points in June 2024, followed by 125 bps of additional cuts throughout the year. However, if the economy strengthens, the Fed may cut rates by a smaller amount.