LOOKING AHEAD TO 2025
Markets have been on edge lately
about when the U.S. Federal
Reserve plans to cut rates. With the
Fed set to issue an update to its
closely watched dot plot, it’s good
to remember that historical
projections can be poor predictors,
especially when the Fed is
determined to remain ‘data-
dependent’ and market events
remain fluid. As the chart above
shows, the Fed ‘dots’ have
historically been an inaccurate
indicator of where the federal funds
rate has ultimately gone.
The 2024 Paris Summer Olympics are quickly approaching. They are scheduled
to take place from July 26th to August 11th. This marks exactly one century
since Paris last hosted the Summer Olympics in 1924. The event will be
broadcast by NBC, with coverage by Snoop Dogg.
The Rest of 2024
Casey, Mark, et al. “Separating AI Hype from Investment Opportunity.” CapitalGroup NACG, 3 May 2024, www.capitalgroup.com/ria/insights/articles/separating-ai-hype-investment-opportunity.html.
Aliaga-Díaz, Roger. “Why We Expect the Fed to Remain Cautious.” Vanguard, 13 Mar. 2024, advisors.vanguard.com/insights/article/why-we-expect-the-fed-to-remain-cautious.
Where are rates headed?
The U.S. economy continues to grow
at a healthy pace despite a
significant increase in the fed funds
rate to its current range of 5.25% to
5.50%, a 23-year high. The
International Monetary Fund (IMF) is
now predicting that the U.S.
economy will expand this year at
more than twice the rate of other
major developed countries.
Although the Fed's efforts to combat
inflation have been successful,
inflation remains significantly above
the Fed's 2% target.
RETROSPECT