3 rate cuts are still achievable in 2024, economist explains
03/01/2024 22:36
With January's flat Personal Consumption Expenditures (PCE) print, investors worry about the data's potential impact on the Federal Reserve's rate cut policies. However, Cleveland Fed President Loretta Mester told Yahoo Finance that she still sees three rate cuts this year if the economy keeps "evolving" as expected. Bank of America Securities US Economist Stephen Juneau discusses this outlook on Yahoo Finance Live. Juneau says he is "leaning more towards" Mester's prediction of three rate cuts in 2024. As "economic momentum" progresses, he believes "disinflation can continue." Juneau also states this could be enough for the Fed to embark on a "very gradual cutting cycle." Juneau notes areas like used cars, apparel, and home furnishings are already seeing deflation. He thinks goods inflation will "subside" as time passes, without putting major downward pressure on inflation. Instead he believes this will allow for a "handoff" to categories like shelter and rent. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith
With January's flat Personal Consumption Expenditures (PCE) print, investors worry about the data's potential impact on the Federal Reserve's rate cut policies. However, Cleveland Fed President Loretta Mester told Yahoo Finance that she still sees three rate cuts this year if the economy keeps "evolving" as expected. Bank of America Securities US Economist Stephen Juneau discusses this outlook on Yahoo Finance Live.
Juneau says he is "leaning more towards" Mester's prediction of three rate cuts in 2024. As "economic momentum" progresses, he believes "disinflation can continue." Juneau also states this could be enough for the Fed to embark on a "very gradual cutting cycle."
Juneau notes areas like used cars, apparel, and home furnishings are already seeing deflation. He thinks goods inflation will "subside" as time passes, without putting major downward pressure on inflation. Instead he believes this will allow for a "handoff" to categories like shelter and rent.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith