Page 299 - DCAC February 2024 Files

Historical policy rates and forward curves

Fed Pivot in 2024?

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Interest Rates – a historic rate hiking cycle, After • the Fed paused in the fall of 2023 and indicated a potential pivot at the December meeting. Markets are currently pricing in • rate cuts of ~2% over the next couple of years. these anticipated rate Despite • cuts, the longer‐term expectation is to keep rates higher than the prior cycle. Sources: J.P. Morgan Guide to the Markets, BIS, Bloomber