Here’s when the Fed is likely to start cutting interest rates, according to investment strategists

The U.S. Federal Reserve is likely to start cutting interest rates by the end of the second quarter despite recent “hotter than expected” inflation data, according to Kristina Hooper, chief global market strategist at Invesco.

The U.S. economy is also likely to dodge recession as the Fed calibrates interest rate policy, she and other strategists said Wednesday at Financial Advisor Magazine’s annual Invest in Women conference in West Palm Beach, Florida.

The Fed has raised borrowing costs for consumers and businesses to rein in high inflation during the pandemic era. That has pushed up rates for mortgages, credit cards, auto loans and other forms of lending.

Inflation has declined significantly from its peak in mid-2022. However, it’s still well above the Fed’s 2% target level.