According to market players, when will the Fed start reducing interest rates?

Fed officials’ forecasts for monetary policy and Fed Chair Jerome Powell’s statements that did not rule out the possibility of a rate cut in the near term indicated that the Fed has shifted its focus to the timing of the cuts. Institutions also updated their analyses after Powell’s statements. Here are market actors’ expectations for the Fed... JPMorgan JPMorgan, which had previously predicted that the Fed would begin quantitative easing in July 2024, brought this expectation back to June 2024 following Fed Chair Jerome Powell’s statements. The institution anticipates that the policy rate in the US will be reduced by 125 basis points by the end of 2024. Goldman Sachs Goldman Sachs expects the Fed to begin cutting rates in March 2024, in line with general expectations in the market. According to Goldman Sachs, the Fed will cut rates by 25 basis points at its March, May and June meetings of next year. Barclays Barclays economists predict the Fed will cut interest rates three times starting in June in their assessment of the path next year. The institution had previously pointed to December 2024 for the rate cuts. Jeffrey Gundlach DoubleLine Capital Co-Founder Jeffrey Gundlach predicted the Fed will cut interest rates by 200 basis points next year and that 10-year U.S. bond yields will fall to 3%. “I believe we will see the yield curve invert,” Gundlach told CNBC.