2024 Anticipates Unprecedented Rate Cut Spree: 7 Cuts, 3 Debates, And An 18% Chance Of Eight

In 2024, markets anticipate continuous rate cuts starting in March, aiming for a total of seven reductions to reach 3.50% to 3.75% by December.

• Markets anticipate rate cuts at every meeting in 2024, starting from March.

• This implies a sequence of 7 consecutive interest rate reductions within the year, aiming to bring the Fed Funds rate down to 3.50% to 3.75% by December.

• Despite this expectation, the latest guidance from the Fed indicates a plan for 3 cuts in 2024, and there is internal debate about whether March is too early to initiate the process.

• Additionally, there is a notable ~18% probability of experiencing as many as eight interest rate cuts throughout 2024.