• Sat. Apr 20th, 2024

Wall Street anticipates no surprises from the Fed, focusing on the “dot plot” instead.

BySamantha Johnson

Mar 20, 2024
Wall Street anticipates no surprises from the Fed, focusing on the “dot plot” instead.

Some analysts are expecting that there will be no rate hikes this year due to various factors. The Federal Reserve had initially planned on cutting rates amid rising inflation and borrowing costs after 20 months, but the expectations for rate cuts keep being pushed back. Fed Chair Jerome Powell mentioned that they may not be confident enough to cut rates as early as March at the Fed’s January meeting. As a result, economists now believe that the Fed won’t be cutting interest rates at all this year.

Chief economist Torsten Slok from Apollo Global Management stated that the economy is not slowing down and some measures of inflation are increasing. This leads to the prediction that interest rates will remain steady and higher for a longer period. Expectations of interest rate cuts have caused some complications for the Fed, as increased growth expectations for the US in 2024 have led to the belief that financial conditions are easing.

Economists at S&P 500 Global Ratings have revised their forecast for US GDP growth in 2024 to 2.4%, up from their initial prediction of 1.5% in November. Despite this growth, the labor market remains strong with low unemployment rates and elevated wage inflation. However, an expanding economy can also result in accelerated inflation rates. Recent data indicated that the Fed’s preferred measure of inflation was still above the central bank’s target in January.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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