Economist Forecasts 3 Fed Rate Cuts in 2024 as Disinflation Continues, Sees Slower Growth Ahead

Economist Stephen Juneau leans towards 3 Fed rate cuts in 2024 like Cleveland Fed's Mester, seeing economic momentum and disinflation continuing.

Juneau believes this disinflation could be enough for a "very gradual cutting cycle" by the Fed.

Areas like used cars, apparel, home furnishings already seeing deflation; goods inflation should "subside" over time.

This allows for a "handoff" to shelter and rent inflation, letting core PCE move towards 2% target.

Juneau revised up 2023 growth forecast to 2.1% from 1.2% but doesn't change Fed rate cut view.