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Pivotal Fed Meeting: Citi Economists' View
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Fed's 2024 Monetary Policy Expectations
Overview
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Citi economists anticipate a pivotal Fed meeting where the potential to resist or accept financial conditions is at stake, with the possibility of premature rate cuts amidst persistent inflation above the target. Despite signs of the Fed preparing to 'pivot' towards cuts, analysts express caution due to potential job loss and slowing activity as the lagged effects of higher policy rates.
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How might the lagged effects of higher policy rates shape future economic policies and decisions?
How might the potential resistance or acceptance of financial conditions impact the broader economy?
What strategies could the Fed employ to mitigate the potential job loss and slowing activity?
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