Rate cut by midyear now more likely, economists say
- Fourth-quarter GDP reinforces Fed’s cautious approach to rate cuts
- Rate cut by midyear now more likely
- Financial markets expect rate cuts by May
- GDP growth in Q4 exceeds expectations at 3.3%
- Economists divided on number of rate cuts
- Some economists expect only two rate cuts
- Growth above long-run average suggests delay in rate cuts
- Economists expect four rate cuts this year
- Some economists predict mild recession by mid-2024
The rapid economic growth rate seen in the last three months of 2023 reinforces the Federal Reserve’s cautious approach to easing monetary policy. Financial markets expect rate cuts by May, but are divided on a March cut. The GDP growth in Q4 exceeded expectations at 3.3%, marking the sixth straight quarter with above-average growth. Some economists expect only two rate cuts, while others predict four rate cuts this year. The growth above the long-run average suggests a delay in rate cuts until the third quarter. However, there are concerns of a mild recession by mid-2024.
Public Companies: FHN Financial (null), U.S. Bank (null), KPMG Economics (null)
Private Companies: undefined, undefined
Key People: Chris Low (Chief Economist at FHN Financial), Raphael Bostic (Atlanta Fed President), Katherine Judge (Senior Economist at CIBC Capital Markets), Beth Ann Bovino (Chief Economist at U.S. Bank), Ken Kim (Senior Economist at KPMG Economics), Kathy Bostjancic (Chief Economist at Nationwide)
Factuality Level: 7
Justification: The article provides information from various economists and their opinions on the Federal Reserve’s approach to monetary policy. While there is some speculation and differing views, the article does not contain misleading information or sensationalism. However, it lacks in-depth analysis and relies heavily on quotes from economists without providing a broader context.
Noise Level: 3
Justification: The article contains relevant information about economists’ opinions on the Federal Reserve’s approach to monetary policy and the GDP data. However, it lacks depth and analysis, and there is no evidence or data provided to support the economists’ claims. The article also includes filler content about text-to-speech technology and unrelated opinions from other economists.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the Federal Reserve’s approach to monetary policy and the expectations of rate cuts. This information can impact financial markets and companies.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article primarily focuses on the Federal Reserve’s monetary policy and the expectations of rate cuts. While this information is relevant to financial markets, there is no mention of any extreme events.
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