A note from Bank of America's strategy department about the Fed follows
The market was ahead of expectations of 5 interest rate cuts next year from the Federal Open Market Committee (FOMC) and even more (6) from the European Central Bank. BoA believes that expectations need to be tempered due to:
Core inflation remains high And inflation risks are higher in early 2024 as the base effects from energy prices fade. In Europe:
Eurozone deflation at current levels could support interest rate cuts starting in March