Wall Street Is a Haven for Doves
Wall Street has not let go of its conviction that the Federal Reserve will cut interest rates next year.
When Federal Reserve officials met last month, their Summary of Economic Projections showed a median expectation for the target rate to be 5.6 percent at the end of this year. That’s the equivalent of one more quarter-point hike above the current range of 5.25 to 5.50 percent. The median expectation for the end of 2024 was for 5.1 percent, which would be a quarter point below the current level or two quarter point cuts from the projection for the end of this year.
CNBC on Tuesday released the results of its survey of economists, strategists, and analysts. It shows that 57 percent expect a cut next year but not until September. That would leave room for three cuts, one each at the September, November, and December meetings.
That’s a…
