10 January 2024
Monthly Market review – Download Article
Driving the big move in markets in November and December was a dovish policy pivot by the Fed.
With broadening evidence of a softer labour market and inflation falling more rapidly than expected,
the Fed signalled that rates had peaked, and for the first time in this cycle a discussion on cuts had
taken place. The updated Fed dot plot in December, setting out governors’ expectations of where
rates will be in coming years, pointed to median expectations of 75bps of cuts in 2024, 50bps more
than expected 3 months earlier
