Global Economic Report

Monetary Policy in 2024

Wall Street is forecasting that GDP will slow in the first half of 2024 with growth averaging 0.35%, so a recession will be avoided. Wall Street expects the FOMC to cut the Funds rate by 0.25% in March and 4 more times by the end of 2024. The FOMC will continue to lower the Funds rate even though economic growth will be accelerating in the second half of 2024. Wall Street justifies this response by the FOMC since inflation will decline below 3.0% and might by the end of 2024 approach the Fed’s 2.0% inflation target. I think this outlook is...

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