Fed rate cut expectations – Société Générale expect no interest rate cut in 2024

Société Générale has revised its forecasts for the Federal Open Market Committee (FOMC), now see no cut in Fed Funds until 2025:

SG cite continued strong US economic data helping to fuel continued above target inflation

• “Consumer prices picked up significantly in the early months of 2024 compared to the latter half of 2023.”
• “The Fed probably perceives this as a temporary three-month fluctuation. Nevertheless, this development may have shaken their confidence, which seems unlikely to recover in time for rate cuts this year.”

Barclays, meanwhile, have revised their forecast to project a cut from the FOMC in December 2024, from September previously. Barclays were also expecting a cut at every other meeting after this, but have abandoned this forecast also.

This article was written by Eamonn Sheridan at www.forexlive.com.