The U.S. Federal Reserve is expected to cut interest rates by over one percent in 2024, with the majority of cuts anticipated in the second half of the year. The decision is influenced by inflation trending closer to the Fed's 2% annual target. Fixed income markets forecast between 1% and 1.5% in interest rate cuts by the end of the year. The Fed's justification for raising interest rates was due to high inflation, which has since significantly cooled. The Fed is closely monitoring the jobs market for weaknesses, and soft jobs data could prompt a more aggressive approach to cutting interest rates.

Fed's 2024 Monetary Policy Expectations