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Major central banks diverge on when the first rate cuts will come
The West’s major central banks all kept interest rates unchanged in recent days, but struck very different tones on the market’s much-anticipated cuts in 2024. The U.S. Federal Reserve sent risk assets rallying on Wednesday when alongside holding its benchmark rate at its current target range of 5.25% to 5.5%, the Federal Open Market Committee revealed policymakers were penciling in at least three cuts next year and four additional cuts in 2025. Markets are now pricing the first 25-basis-point cut in March and expect the Fed funds rate to be around 150 basis points lower by the end of next year, according to CME ... (full story)