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30 Jan 2024

International Economy

Fed is expected to keep its policy rate steady at 5.25-5.50% before hiking the rate 3-4 times during 2024 (Business Brief No.4032)


        Regarding the FOMC meeting (January 30-31, 2024) and Fed’s monetary policy stance for 2024, we at KResearch view that the Fed may begin to cut its policy rate in 3Q24, and set a table for 3-4 rate cuts during 2024, as indicated in the Fed’s latest dot plot, due to the fact that 1) inflation in the US has gradually returned to the Fed's target range because the labor market is coming into a better balance; and 2) a soft landing seen in the US economy after the GDP growth ended 2023 much stronger than expected.

International Economy