Deutsche Bank: Fed to Cut Rates 175 Basis Points in 2024 Amid Mild Recession
• Deutsche Bank economists predict 175 basis points in Fed rate cuts in 2024 due to mild US recession arriving in H1 2024
• DB expects 2 quarters of negative economic growth in H1 2024, leading to a rise in unemployment rate to 4.6% by mid-2024 from 3.9% now
• DB projects initial 50 basis point Fed rate cut in June 2024, followed by 125 bps more over rest of 2024
• DB expects economic weakness to ease inflationary pressures
• Traders currently pricing in Fed rate of 4.48% by December 2024, while DB expects 3.5%-3.75%