Briefings

Week InReview: December 15, 2023

Forecasts. Shredded.

Fed Chair Jerome Powell says officials have discussed the timing of possible rate cuts. | Photo: Bloomberg

Economists at some of Wall Street's biggest banks are now calling for the Federal Reserve to roll out interest-rate cuts earlier and faster next year, emboldened after the central bank's last meeting of 2023 set off fireworks across financial markets. “In light of the faster return to target, we now expect the FOMC to cut earlier and faster,” the team at Goldman Sachs says. The firm now sees 25 basis-point rate reductions for March, May, and June, with further moves on a quarterly basis. JPMorgan bumped its view on the start of the easing cycle to June from July.

 


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