US Fed Indicates Cuts in 2024, Induce US Bond Rally
14-Dec-2023
The US Federal Reserve held US Fed Funds rates steady in the range of 5.25 per cent to 5.5 per cent and more importantly indicated rate cuts in the next year, which triggered a sharp rally in US and domestic bonds. The median projection for Fed funds rate for 2024 stands revised down to 4.6 per cent from 5.1 per cent in the September projection, which implies nearly 75 bps rate cut expectations as against earlier expectation of 50 bps. In a first US Fed acknowledged likely peaking of policy rates.