In addition to the first cut in March 2024, we’re expecting a total of six cuts for the whole year. That will bring the federal-funds rate down from currently at a 5.25% to 5.50% range. It will take that down to a 3.75%-4.00% target range. So, that’s a 150-basis-point reduction from current levels by the end of 2024. And then, we’re expecting further cuts, another 150 basis points of cuts in 2025, taking the federal-funds rate down to 2.25% by the end of that year. And then, even in 2026, we expect it to get down as low as 1.75%. So that’s taking the federal-funds rate really all the way back down to about prepandemic levels. Long-term rates should fall accordingly, and that will help ensure that the economy grows at its full potential, and we don’t see a recession in that we ultimately see the soft landing that is very much possible. Because in contrast to what many people thought a year ago or so, inflation is coming back down to normal without a recession.
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