PLDGP - Dovish Decisions
2024-03-24 09:00:00 ET
Summary
- U.S. equity markets advanced this week while benchmark interest rates retreated after the Fed reiterated its rate cut path in 2024, indicating that the committee was unfazed by firming inflation.
- Updated FOMC "dot plots" showed that officials maintained their plans for three rate cuts this year even as their updated outlook incorporated expectations of hotter inflation and stronger economic growth.
- Rebounding after two straight weeks of declines, the S&P 500 rallied 2.2% this week- climbing once again to fresh record highs - and extending its year-to-date gains to over 10%.
- Real estate equities - the most "Fed-sensitive" segment - posted mixed performance this week, as a rebound from many of the most rate-sensitive names was offset by weakness from data center REITs amid a renewed short-selling campaign.
- Breaking with the "good news is bad news" paradigm that markets displayed prior to the Federal Reserve's policy decision this week, markets responded favorably to a stronger-than-expected slate of economic data showing surprising resilience across labor markets as well as the recently sluggish manufacturing and housing sectors.
Real Estate Weekly Outlook
U.S. equity markets advanced this week while benchmark interest rates retreated after the U.S. Federal Reserve reiterated its rate cut path in 2024, indicating that the committee was unfazed by recent hot inflation readings. Updated "dot plots" from the FOMC showed that officials maintained their plans for three rate cuts this year even as their updated outlook incorporated expectations of hotter inflation and stronger economic growth - a policy indication that was consistent with the relatively "dovish" tone of other major central banks decisions this week across Europe and Asia....
Dovish Decisions