Deutsche Bank predicts dovish Fed path: three rate cuts in 2024

According to Deutsche Bank, the Federal Reserve will implement three interest rate cuts in 2024, which will begin as early as the second quarter. Driven by slowing inflation and a positive economic environment, this easing cycle aims to reduce federal funds rates to multi-year lows. This dovish shift is expected to stimulate demand in interest-sensitive industries such as real estate and technology, which could boost jobs and consumer spending. However, the Fed's actions will still depend on the data, and any deviations may occur if inflation continues or the economy is weak.