ABN AMRO sees first Fed rate cut by September

ABN AMRO with some thoughts on the Fed:

• Expected to cut rates starting in September 2024
• Recent macro data indicate a cooling economy, with lower consumption as excess savings are depleted.
• But believes household balance sheets and accommodative financial conditions are expected to provide a floor for economic activity, preventing a deeper recession.
• Reasons for expecting cuts in September is continued disinflation, a normalizing labour market and evidence of an economic slowdown in the US.
• Think as a result the Fed will cut rates more than what markets are currently anticipating

This article was written by Arno V Venter at www.forexlive.com.