Anticipating the Fed: Expectations and Impact on Stocks

The market anticipates the Fed to start cutting rates in 2024, but the actual number of cuts is uncertain. The Fed's decision could impact the stock market rally and investors should pay attention to Fed Chair Powell's commentary. Expectations range from 1-2 cuts, which may tighten financial conditions, to 4-5 cuts, potentially signaling a recession. However, the Fed is likely to err on the side of caution and signal 3 cuts.

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