Deutsche Bank expects Federal Reserve rate cut in December (previously expected rate cut in June)

Deutsche Bank reduces its expectations for a 3*25 basis point rate cut from the FOMC in 2024 to just 1, representing a rate cut in December

• see +0.3% core PCE in March
• see +0.3% of basic PCE also in April
• “Recent developments – namely rising inflation figures, strong labor market data and easing financial conditions – have clearly reduced the case for lowering rates.
• This makes a reduction as early as June or September unlikely in the absence of clear signs of deterioration in the labor market.
• see only 2 reductions in 2025, both in the first half of the year

Okay. See you on December 18.

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

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