Fed will have it's initial rate cuts mid-year, with 3 cuts in 2024: Analyst

Treasury yields are trending higher as investors brace themselves for the Federal Reserve's highly anticipated decision on Wednesday. To shed light on the factors driving this yield movement, Truist's Managing Director of Fixed Income Chip Hughey joins Yahoo Finance Live.
Hughey attributes the rise in yields to three factors: the continued stickiness in inflation data, the Fed's likelihood to maintain a "higher-for-longer" stance, and strong Treasury issuance. However, he notes that "the biggest factor for yields" has been the market's pricing of six to seven rate cuts, which has now been revised to below three, resulting in "big implications on the yield curve."
Hughey believes the Fed could initiate rate cuts mid-year when they have a "sufficient" amount of evidence of cooling inflation. Although he acknowledges the increasing probability of zero cuts occurring in 2024, he does not believe that scenario will materialize, stating that despite "a bumpy path," the Fed "will see that inflation is cooling."
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[@williambudd2850]

The fed must not cut rates until food prices go down!!!

[@user-yy9hk9od9u]

Not if inflation keeps going up.

[@BrandyHeng007]

When the Dollars dies, the nation dies along with it.

[@francisco12908]

Not really, no! I don't believe in rate cuts this year!

[@NoraLovesBendHomes]

but I hope you're wrong!

[@Jake-pf4kv]

Why are they cutting rates?

[@leonardodtc4847]

Housing prices likely.

[@CosmicCosmo1]

Inflation rising and we are already guaranteed 3 rate cuts this year? Ouch. Buy some gold folks

[@NoraLovesBendHomes]

I don't think they said anything about GUARANTEED cuts 🤪

[@glorgau]

Hah! Higher for longer.

[@free-qe6wx]

So, he has no idea whatsoever.

[@The_Clumsy_Investor]

We need the meme; "You sure about that?!"

[@dimitaryordanov3588]

Wishful thinking.

[@LBSeeinYa]

Its *

[@23Gino]

Big Bubble😂

[@MrDonny27]

Why even listen to this bs

[@kmng3207]

Isn't TRUIST shutting down 72 branches???

[@peterbedford2610]

TNX creeping towards 5%. Rate cuts are in secure nd place behind QE

[@laturca5052]

His name is Chip.. you’re so cheap or nvidia chip better than this Chip.. I know I’m so bad..