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Stocks and bonds are up sharply today after the Federal Reserve pivoted to rate cuts in 2024 as inflation eases 📈 As expected, the US central bank kept interest rates unchanged at 5.25-5.50%. However, it was the lack of pushback against growing investor expectations for 2024 rate cuts helped spark a massive rally in Treasuries and sent the Dow Jones Industrial Average to a record high. Updated quarterly forecasts showed Fed officials expect to lower rates by 75 basis points next year, a sharper pace of cuts than indicated in September. A tweak to the Fed’s post-meeting statement on Wednesday also highlighted the shift in tone, with officials noting they will monitor a range of data and developments to see if “any” additional policy firming is appropriate. That word was not present in the November statement. The Bank of England and European Central Bank are to follow today 👀 #federalreserve #jeromepowell #interestrates #stocks #yields #finance

Fed Prepares to Shift to Rate Cuts in 2024 as Inflation Eases

Fed Prepares to Shift to Rate Cuts in 2024 as Inflation Eases

bloomberg.com

Ade O.

Payment and Settlement Analyst @ GTBank UK | Master's in International Business |FX Operations Specialist

10mo

It is also worth noting that the sterling also rallied against the $ today, amid MPC holding rates following strong signal CPI is falling sharply.

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