What to expect in 2024: Fed pivot, cooling inflation, easing growth
Dollar, Euro and Pound banknotes are seen in this picture illustration taken April 28, 2017. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights
Jan 12 (Reuters) - Global growth will likely slow this year but a dovish tilt in the Federal Reserve's stance has raised hopes for the U.S. economy and brightened the outlook for riskier assets, according to big banks.
The European Central Bank and the Bank of England sticking to their higher-for-longer rates stance, however, has blurred expectations for Europe.
Following are forecasts from some major banks and peers on economic growth, inflation, Fed policy and how they expect certain assets classes to perform.
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U.S. inflation and Fed forecasts:
Latest data showed that in the 12 months through December, U.S. consumer prices edged 3.4% higher after increasing 3.1% in November, tempering expectations of an interest rate cut in March. The pace of price rises, however, slowed from a peak of 9.1% in June 2022. The Fed targets an inflation rate of 2%.
The central bank's main rate currently stands in the 5.25%-5.50% range after 525 basis points of hike since March 2022. Rate cuts are seen coming as early as March.
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Forecasts for stocks, currencies and bonds:
As of 1412 GMT on Jan. 12, 2024:
S&P 500 (.SPX): 4780.24
US 10-year yield : 3.9748%
EUR/USD : 1.0953
USD/CNY : 7.1640
USD/JPY : 144.84
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Compiled by the Broker Research team in Bengaluru; Editing by Sriraj Kalluvila
Our Standards: The Thomson Reuters Trust Principles.
