Wall Street’s Rate-Cut Dreams Have to Wait as Fed Stays on Hold
- Policymakers expect just one cut in 2024, but four in 2025
- New bar ‘to measure labor data from here’: Cayla Seder
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Wall Street got a reality check on Wednesday as the Federal Reserve laid out projections for just one interest-rate cut in 2024 with traders hoping the central bank would be more aggressive in reducing borrowing costs.
The S&P 500 Index and Nasdaq 100 Index are paring their gains after rising more than 1% earlier, but they remain near record highs, propelled by rising rate-sensitive technology shares like Apple Inc., Microsoft Corp. and Nvidia Corp. Fed swaps showed traders still favored at least two rate cuts this year despite the central bank’s guidance. As recently as this morning, swaps contracts were pricing in quarter-point rate cuts in November and December.