2023-12-15 12:53:00
What we already know, and the information comes directly from the American Federal Reserve (Fed) this week, is that the principle of a reduction in interest rates in the United States is no longer a chimera. The decline in American inflation is such that the head of the Fed was able to demonstrate optimism about the future of the American economy. The Fed is expected to cut its key rates at least three times next year.
Investing: How to Use Multiple Strategies at the Same Time to Reduce Risk
They are currently in a range of 5.25% to 5.50%, the highest in 22 years. This is confirmed by Bill Papadakis, Senior Macro Strategist at the Swiss bank Lombard Odier, in a note released Thursday: “Fed President Jerome Powell did not attempt to oppose the current expectations of the market regarding substantial reductions in interest rates next year. We view it as a strong signal that the Federal Reserve is ready to move toward rate cuts sooner than expected.”
Series of major electoral deadlines
The stage is set, which fuels a buying trend on stock and bond values. But we should not err on the side of optimism. Indeed, the rise in long-term interest rates will still have its effects next year, with a slowing effect on developed economies. Indebted companies and states will have to juggle interest charges. The normalization of the rate context mentioned by Jerome Powell on Thursday will not happen in a few weeks.
Finally, 2024 will be a year marked by a series of major electoral events likely to influence the economic policies of the heavyweights of the world economy.
Uncertainties remain, as always, but our experts distinguish in this fog trends which should emerge in the months to come.
Find here what 2024 has in store for investors:
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