Insights

Rate cuts potentially off the table for 2023

exchange68September 13, 2024

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Quick Take

The fed funds rate now implies that rate cuts are off the table for 2023 and are expected to remain higher for a longer time frame in the year.
As the year progresses, rate hikes are expected to continue, while rates are expected to hold steady in the second half of 2023.
A solid improvement in yesterday’s U.S. PMIs reinforced the need for further policy tightening, particularly with inflation slowing less than expected in the U.S.
The S&P composite PMI jumped out of contraction on an absolute basis, showing significant improvement.

Fed Funds Rate Probability: (Source: CME Fed Watch Tool)

S&P Global Composite: (Source: Macroscope)

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

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