All eyes are on the Federal Reserve as it wraps up its meeting today. While a quarter-point rate cut seems almost certain, investors are more interested in what comes next for 2024.
Back in September, the central bank signaled a full percentage point of rate cuts for 2025. However, inflation has remained stubbornly above the Fed’s 2% target since then. Added to the mix, the election of Donald Trump could mean trade, tax and immigration policies that could push prices even higher. Deutsche Bank economists now predict that the Fed will likely signal three-quarters of a percentage point of rate cuts next year.
Meanwhile, Wall Street seemed optimistic. Before the Fed’s 2 p.m. ET announcement, the Dow Jones Industrial Average was trading higher. It comes after the blue-chip index endured its longest losing streak in nearly 50 years.
Market highlights:
- Major indexes rose slightly, with the Dow leading the gains, followed by the S&P 500 and Nasdaq Composite.
- In Japan, Nissan shares rose, while Honda fell, as the automakers explore a potential merger.
- Germany’s Commerzbank shares rose after UniCredit increased its stake, signaling a potential collaboration.
- General Mills shares took a hit after the company cut its profit expectations, citing consumer fatigue over high food prices.
- Markets, investors and economists are all eagerly awaiting the Fed’s direction for the year ahead.
