According to their analysis, the central bank is expected to slash interest rates by a substantial 50 basis points (bps) by June 2024, and an even more dramatic 150 bps by the end of the same year.
This prediction, if accurate, would mark a significant shift in the Fed’s approach, which has been steadily raising rates in an effort to combat persistent inflation. The move would provide much-needed relief for borrowers and potentially stimulate economic growth, but could also raise concerns about the central bank’s ability to maintain price stability.
The announcement from State Street has sent shockwaves through the financial markets, with investors closely monitoring the situation for any further developments. As the world’s largest custodian bank and one of the most influential asset managers, State Street’s insights carry significant weight, and their forecast is likely to be closely scrutinized by policymakers, economists, and market participants alike.
