Société Générale has revised its forecasts for the Federal Open Market Committee (FOMC), now see no cut in Fed Funds until 2025:
SG cite continued strong US economic data helping to fuel continued above target inflation
- "Consumer prices picked up significantly in the early months of 2024 compared to the latter half of 2023."
- "The Fed probably perceives this as a temporary three-month fluctuation. Nevertheless, this development may have shaken their confidence, which seems unlikely to recover in time for rate cuts this year."
Barclays, meanwhile, have revised their forecast to project a cut from the FOMC in December 2024, from September previously. Barclays were also expecting a cut at every other meeting after this, but have abandoned this forecast also.
