Deutsche Bank: This Week's Fed Rate Cut Signals Overall Rate Cuts in 2024
According to ChainCatcher, Deutsche Bank market strategist Jim Reid stated in a report that the magnitude of the Fed's first rate cut will influence the overall rate cut for the year. If the Fed cuts rates by 25 basis points on Wednesday, Deutsche Bank expects the Fed's projections to show a total of 75 basis points in rate cuts this year. However, if the Fed opts for a 50 basis point cut, they anticipate 100 basis points of rate cuts by the end of the year.
Data from Refinitiv indicates uncertainty surrounding the size of the rate cut this week, with the money market currently favoring a 50 basis point cut at 59% probability, and a 25 basis point cut at 41% probability. (JinShi)