Federal Reserve policy rates have likely peaked, first cut only likely middle of 2024

A snippet from US financial firm Principal Asset Management, says that while the Federal Open Market Committee (FOMC) has likely hit peak Fed Funds the message from Powell doesn’t rule out further hikes if necessary.

• “As long as economic growth is strong, a resurgence in inflation is a risk”

• “As such, the first Fed rate cut will likely only come in late 2Q 2024, once job losses have risen and growth has clearly slowed.”