Stronger signaling from the Federal Reserve that interest rate cuts are on the menu in 2024 understandably sent both stocks and bonds soaring on Wednesday. And would stock investors celebrate an economy that requires the Fed to lower its policy rate by 150 basis points? So perhaps they signal to markets that cuts are coming at the March, May and June meetings. In that world, much of the stock market rally of the past six or seven weeks seems misplaced. As things stand the stock market seems to have a better read on what’s likely to happen.

Source: Punch December 15, 2023 15:01 UTC