Markets have now priced in an additional rate cut in 2024 with prediction markets now showing 2 cuts this year.
Meanwhile, odds of another rate HIKE this year are now down to 8%, according to Kalshi.
The odds of zero rate cuts in 2024 have dropped to just 28% and odds of just 1 rate cut are down to 25%.
Once again, markets are beginning to buy into the "Fed pivot" narrative even as inflation is back on the rise.
This comes after the Bank of Canada cut interest rates today for the first time since 2020.
Are rate cuts coming back too soon again?
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BullnBearTrading OP : Today, Canada was the first country of the G7 to begin cutting rates.
This kicks off what appears to be the first major rate cut cycle since 2020.
Will the US follow or is higher for longer here to stay?
BFSkinner BullnBearTrading OP : Eu banks are next to drop rates. Then USA
SCP WW : What impact will bank stocks have if interest rates are cut?
Maniac Fool : a lot of rate cut hot air