Probability of Federal Rate Cut in March 2024 Leaps to 63.4%
The probability that the US Federal Reserve will start cutting its interest rate by at least 25 bps in March 2024 leapt to 63.4% compared to only 21% in the prior week. Continued improvement in inflation, both on the CPI and PCE front, alongside dovish comments by Fed Chairman Jerome Powell have fueled the market to price in a better than 50-50 chances of a rate cut in March instead of May. As a result, the US 10-year yields have slipped back to 4.22% after it reached a 16-year high of 5.00% in October. If indeed the Fed will start to cut sooner than expected, then this much awaited policy shift may finally trigger risk taking to take place in emerging markets.
_____
To know more about the Trading Edge Equity Advisor, kindly click HERE. Subscribe now to receive email alerts before the price moves! Here’s what our students and subscribers say. 🙂
*Consensus target price or average target price given by the major foreign and local brokers of various stocks on top of index names are available in our Equity Advisor!
