"Predicting the Fed's Interest Rate Cuts: Insights from Investment Strategists and Bond Traders"

Investment strategists predict that the U.S. Federal Reserve is likely to start cutting interest rates by the end of the second quarter, despite recent higher-than-expected inflation data. They anticipate cumulative cuts of 0.75 to 1 percentage point in 2024, with the possibility of a "soft landing" for the economy. The Fed's decision is influenced by historical interest-rate-hiking cycles, with expectations of three to four rate cuts this year. While concerns about a potential recession linger, the strategists believe the U.S. economy will likely avoid one as the Fed adjusts its interest-rate policy.