Fed Rate Cut Expectations 2024 Forecast. At the start of 2024, investors expected the federal reserve to cut interest rates substantially this year as inflation cooled. On friday, october 11, the dax gained 0.85% on ecb and fed rate cut hopes, closing at 19,374 german inflation falls to 1.6%, boosting ecb rate cut bets and supporting.
The dot plot suggests another 50 bps before the end of the year and the fed funds rate falling to 3.4% in 2025 and 2.9% in 2026. The widespread expectation is for a cut of 0.25 percentage point, or 25 basis points, to benchmark rates from the current range of 5.25% to 5.5%.