Posted 3/24/2024, 10:15:00 AM
Fed Signals Rate Cuts Despite Persistent Inflation Concerns
- FOMC meeting surprised many by still intending to cut rates 3 times in 2024 despite hotter inflation
- Inflation swaps market predicts inflation will remain high over next few months
- Fed seems too eager to cut rates which could be a mistake if inflation persists
- Fed projecting hotter inflation, stronger growth, and higher neutral rate but still intends to cut rates
- Fed signaling it wants to cut rates no matter what, which may be the wrong message if inflation remains high