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Fed Rate Path Dips But Holds Three Cuts For 2024

STIR
  • Fed Funds implied rates have dipped a little further overnight (0-1bps), as softer UK CPI added to yesterday’s larger spillover from CAD CPI.
  • Cumulative cuts from 5.33% effective: 0.5bp Mar, 2.5bp May, 17bp Jun, 27bp Jul and 74bp Dec.
  • Despite cooling, the Dec’24 implied rate remains slightly above the median dot from the Dec SEP, as has been the case since late last week.
  • Today’s refreshed dot plot is in focus – see the full MNI Preview here: https://roar-assets-auto.rbl.ms/files/60396/FedPrevMar2024%20-%20With%20analysts.pdf

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