Wells Fargo has taken a peek into their crystal ball and sees the Federal Reserve cutting interest rates twice in 2024. This prediction comes as inflation seems to be cooling down, making the journey to that magical 2% target a bit clearer. In May, core inflation dropped for the second month in a row, which is a big reason for their optimism.
In their latest investor note, Wells Fargo mentioned they're pretty confident the Fed will start lowering rates before the end of the year. They foresee two small rate cuts, one in September and another in December. But here's the twist – it's going to be a close call whether we get one or two cuts. Imagine waiting for a game-winning shot in the final seconds!
Now, let's talk inflation. Picture it like your favorite streaming service dropping new episodes. Wells Fargo thinks inflation will slow down, like a show releasing episodes at a steady pace. They expect core inflation to increase by just 0.2% each month for the rest of the year, compared to 0.3% earlier this year. It's like your spending is finally getting a bit of a break!
Meanwhile, the stock market had a bit of a rough start on Friday. Just like hitting snooze on your alarm, sometimes the market needs a moment to adjust.
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