Investors brace for the Fed to dial back its 2024 rate cut predictions

Investors are on edge this week as Federal Reserve officials prepare to signal how many interest rate cuts are still likely in 2024.

Most market watchers believe policymakers will dial their expectations back. The question is by how much.

The new projection on Wednesday will come in the form of a so-called dot plot, a chart updated quarterly that shows each Fed official’s prediction about the direction of the federal funds rate.

In March, the dot plot revealed a consensus among Fed officials for three cuts. Now that projection is in question following a string of sticky inflation readings, cautious commentary from Fed officials, and a US labor market that added more jobs than expected in May.


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