"Economists' Uncertainty Grows as Fed Rate Cut Expectations Hit 2024 Low"

Futures traders have reduced their expectations for how much the Federal Reserve will cut rates in 2024 to the lowest level since October, with Fed funds futures contracts for December reflecting expectations of around 60 basis points in rate cuts, compared to 150 basis points at the start of the year. This shift comes amid evidence of continued strength in the US economy, with Treasury yields moving higher as a result. The combination of strong data and limited progress on inflation has led top officials to advocate for patience in approaching the decision on when to cut rates, with investors closely watching the Consumer Price Index for further insight.