Posted 3/22/2024, 1:47:29 PM
Fed Holds Rates Steady But Signals Possible Cuts in 2024 If Inflation Cools
- Fed announced keeping interest rates steady, outlook remains 3 rate cuts in 2024
- Strategist notes "changing market outlook" on timing/path of rate cuts
- As inflation stays high, Fed may not wait for 2% target before cuts
- Question is how markets/bonds will respond if Fed cuts rates while inflation above target
- Worst case is Fed gets behind curve on inflation again and has to consider more hikes, but strategist sees little chance of that happening