Deutsche Bank cuts its expectation of 3*25bp rate reductions from the FOMC in 2024 to just 1, a December rate cut
- see +0.3% core PCE in March
- see +0.3% core PCE in also in April
- “Recent developments – namely, upside inflation prints, solid labor market data, and easing financial conditions – have clearly diminished the case for commencing rate cuts
- This will make a cut as early as June or September unlikely absent clear signs of labor market deterioration
- see only 2 cuts in 2025, both in H1
Well, OK. Bring on December 18.
