Posted 12/14/2023, 6:19:00 PM
Markets Rally on Prospect of Easier Fed Policy, But Outlook Remains Uncertain
- TradFi markets are pricing in significant Fed rate cuts in 2024 based on latest Fed projections
- Stocks, bonds, dollar, and gold are rallying on expectations of easier monetary policy
- Bitcoin price also got a boost from the news, recovering some losses from recent "flash crash"
- Markets may be getting ahead of themselves as data still shows economic strength and stubborn inflation
- Fed median forecast is 75 basis points of cuts by 2024, but markets have priced in nearly 150 points