🔺Surprise on the date of the Fed’s interest rate cut

🔷 With the surprise inflation data in the United States for January, which was higher than economists expected.

🔺Markets practically buried the chances of the Fed making its first interest rate cut of the year in the first quarter, and hope that this would also happen in May has diminished.

🔷At #Barclays: They believed that cutting interest rates was possible in the first quarter of 2024, although their base case indicated May. Strategists now expect a rate drop in June.

🔶But after this step,#Barclaysexperts believe that the subsequent cuts in interest rates will not be continued this year, as they said:

“We expect the FOMC to begin tapering every two FOMC meetings beginning in June, bringing the federal funds target to 4.50-4.75% by the end of 2024 and 3.50-3.75% by the end of 2025.”