Central Banks
Traders Add to Bets on Three Fed Rate Cuts in 2024
- Swaps briefly price in more than 60% of a third move in 2024
- Expectations remain short of where they began the year
The Marriner S. Eccles Federal Reserve Board building in Washington, DC.
Photographer: Saul Loeb/AFP/Getty ImagesThis article is for subscribers only.
Traders added to bets the Federal Reserve will cut interest rates three times this year after Goldman Sachs Group Inc. said conditions were ripe for easing.
Two quarter-point rate reductions are fully priced in for 2024, with market-implied odds of a third cut reaching about 60% on Monday. The first move is widely expected in September, though Goldman Sachs economists said they “see a solid rationale” for officials to lower rates as soon as July.