Expect four rate cuts in 2024 that will bring the federal funds rate to 4.30% by year-end, according to the Franklin Templeton Institute Global Investment Management Survey, which compiles the views of the firm's 300 senior investment professionals who work across equities, fixed income, and alternatives.
That's still more cuts than the Federal Open Market Committee projects in its dot plot: three reductions and a fed funds rate of 4.63% by year-end.
Stephen Dover, chief market strategist and the head of the Franklin Templeton Institute, expects those rate cuts to begin closer to June or July and be 25 basis points each.
For now, Dover pointed to a strong US economy, with solid jobs and GDP growth, as working against the possibility of earlier rate cuts.
This will be another sticky point that the central bank will likely consider and could impact when cuts happen, he said.
Stephen Dover, Dover, there's
Franklin Templeton Institute Global Investment Management Survey, Federal, Franklin Templeton Institute