The Fed Will Set the Pace for Markets More Than Ever This Year
What the US central bank says and does will dictate how stocks and bonds fare in 2024.
The Fed will matter more than ever to what happens in financial markets this year.
Photographer: Saul Loeb/AFP via Getty Images
The surge in consumer prices that drove inflation way past central banker’s targets in recent years triggered a wave of interest-rate hikes. But as policymakers were desperate to rebuild their credibility as overseers of monetary stability, their zeal threatened to savage growth and spark unemployment. The pause in hiking we’ve seen in recent months is now expected to be followed by an easing of policy.
As the charts below argue, what the Federal Reserve does next will be more important than ever in determining how financial markets behave in the new year.