The FOMC has kept rates on hold since its last hike in July. Economists at ABN Amro still expect the Fed to start cutting rates from June.
The upper limit of the FFR will reach 4.25% by the end of 2024, and 3% by mid-2025
We expect the Fed to start cutting rates in June, with the risk somewhat tilted toward earlier cuts.
Even with rate cuts starting next year, monetary policy is expected to remain tight throughout 2024 and even into 2025.
We expect the upper bound of the federal funds rate to reach 4.25% by the end of 2024, and 3% by mid-2025.
The Fed also appears willing to reduce its quantitative tightening somewhat earlier than expected, albeit gradually and well-timed.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
