Fed rate cut expectations - Société Générale expect no interest rate cut in 2024

Société Générale's chief U.S. economist, Stephen Gallagher, said on Wednesday that the Federal Reserve is unlikely to cut interest rates in 2024, despite market expectations of such a move.

Gallagher pointed to the strong economic growth and rising inflation as reasons for the Fed to hold off on any rate cuts. He also noted that the central bank is likely to begin tapering its asset purchases later this year, which would further reduce the need for rate cuts.

The comments from Société Générale come as market participants have been pricing in a potential rate cut by the Fed in 2024, amid concerns about the impact of the Omicron variant and other potential headwinds to the economic recovery.

However, Gallagher's remarks suggest that the Fed may take a more cautious approach to monetary policy, as it seeks to balance the need to support the economy with concerns about inflation and financial stability.

Overall, Société Générale's outlook suggests that the Fed is unlikely to make any significant changes to its interest rate policy in 2024, barring a major shift in economic conditions.