Former New York Fed economist says 3 FOMC price cuts this 12 months is an affordable base case

Social media studies in a single day on feedback from former New York Fed economist Steven Friedman:

• Federal Reserve policymakers will keep cautious about slicing rates of interest this 12 months given robust progress and unstable inflation, and there is a rising likelihood they are going to ship even fewer than the three cuts embedded in official projections, former New York Fed economist Steven Friedman advised MNI.
• “Three rate cuts as a base case this year still looks reasonable, but the risks are now increasingly skewed to fewer than that and a later start,” he stated in an interview. “This is going to be a very cautious cutting cycle.”

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It was solely 8 weeks in the past that analysts had been searching for six and even seven FOMC price cuts in 2024. Yesterday I reported on an analyst saying there will not be any in any respect:

• Why the Fed won’t cut rates in 2024: US economy not slowing, Fed tailwind since December

Three cuts is someplace within the center.

There’ll (possibly) be new info incoming on Wednesday, US time:

• Federal Reserve Chair Powell speaking in Congress on Wednesday, preview: “Less hawkish”

This text was written by Eamonn Sheridan at www.forexlive.com.