Posted 12/6/2023, 6:22:53 PM
Jefferies: Fed Expected to Begin Cutting Rates in 2024 Amid Slowing Inflation and Economic Concerns
- Jefferies economists forecast Fed to start cutting rates in March 2024, reducing rates over subsequent meetings to 2.75-3%
- Key factors concerns over slowing inflation and pessimistic economic growth outlook
- March 2024 rate cut would be a "maintenance cut" to avoid putting pressure on the economy
- Consumer spending is high but unsustainable; once it or business employment wobbles, labor market will weaken
- By May 2024, Fed will be chasing more rapidly weakening labor market with additional rate cuts