Investors are starting to take seriously the idea that the Fed might not cut interest rates in 2024.
At this point, investors are viewing economic strength as ultimately good news for the stock market, if that means a recession is delayed.
AdvertisementFrom seven, to three, to now potentially zero, projected interest rate cuts in 2024 are quickly going out of style on Wall Street.
So a delay in interest rate cuts, on paper, would suggest lower stock prices.
And better-than-expected first quarter profits have helped put a floor on a stock market that is trading near record highs, even as talks of interest rate cuts fade.
Persons:
Neel Kashkari, Kashkari, Michelle Bowman, Bowman, Ed Yardeni, Yardeni, Mohamed El, Torsten Slok, Slok, Ken Fisher
Organizations:
Federal Reserve, Atlanta Fed, Minneapolis Fed, Fed, Bank of America