QQQ - Despite What The Fed Says The Policy Is Still 'Higher-For-Longer'
2024-03-21 09:00:00 ET
Summary
- The March SEP still projects 3 cuts in 2024, but the dot-plot reveals that the FOMC is evenly divided (9-10), thus, the consensus will be hard to reach.
- Any cut before December will require perfect inflation data over the next few months, which is unlikely.
- The policy is still "higher-for-longer," but the Fed is apparently unwilling to disrupt the markets before the election.
- Thus, the S&P 500 Index is likely to rise until the next CPI report, but the AI-themed bubble could burst randomly.
Fed says still three cuts in 2024
The FOMC has released the updated Summary of Economic Projections at the March meeting. The highlight is that the FOMC still expects three cuts in 2024, despite the stronger inflation data in January and February of 2024....
Despite What The Fed Says, The Policy Is Still 'Higher-For-Longer'