Ten News Business: BSE Sensex surges over 650 points, Nifty above 21,000 | US Fed Reserve gives reason
Ten News Network
New Delhi (13/12/23):
SUMMARY OF FED DECISION (12/13/23):
1. Fed leaves rates unchanged for third straight meeting
2. Fed says growth of economy “has slowed” since Q3 2023
3. Most Fed officials see interest rate cuts in 2024
4. Median projection shows 3 rate cuts in 2024
5. Fed sees 4.1% unemployment by end of 2024
6. Fed sees US GDP growth at 2.6% in 2023 and 1.4% in 2024
The market is pricing in DOUBLE the number of rate cuts in 2024 than the Fed projects.
This is the first significant mention of rate cuts in 2024 by the Fed.
However, markets are currently pricing in up to 6 rate cuts in 2024.
Market expectations remain far more dovish than the Fed itself.
