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Wall Street Expects Rate Cuts to Begin as Early as Next March and a Reduction of Up to 2.75%

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In One Chart wrote a column · Dec 28, 2023 07:27
The discourse on Wall Street has shifted from the likelihood of interest rate cuts to speculating on their timing.
The Fed is now viewed as being dovish relative to other major central banks. Pricing for a rate cut in March increased after Fed Chairman Jerome Powell was unexpectedly dovish at the Fed's December meeting.
The CME's FedWatch Tool indicates that futures markets are pricing in rate cuts totaling 125 basis points next year. That would put the Fed Funds rate in a range of 4.00%-4.25%, compared to the current range of 5.25%-5.50%.
Wall Street Expects Rate Cuts to Begin as Early as Next March and a Reduction of Up to 2.75%
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