Deutsche Bank expects a December Federal Reserve rate cut (were previously tipping June)

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.

This article was written by Eamonn Sheridan at Source