2024 Market Outlook | The Fed: From Foe to Friend

David Treece |

It appears 2023 avoided what many prognosticators called “the most anticipated recession in history,” recession risks entering 2024 haven’t disappeared. Although economic data is improving off its lows, the risk of recession is still elevated.

While mistakes are possible, it is more likely the Fed will end up being a friend in 2024 and, if an economic slowdown materializes, they would likely cut rates which should act as a backstop for markets. The general sentiment is anticipatory of rate cuts, including the Fed’s own dot plot which projects a lower federal funds rate by the end of next year.

Volatility could also increase as we enter an election year and geopolitical unrest remains in Europe, Asia, and the Middle East. Additionally, an economic slowdown could be prolonged and even deepen if the Federal Reserve (Fed) is slow to cut interest rates when inflation is under control.

Read our broker-dealer Cetera Investment Management's annual Market Outlook for 2024.

Download the PDF.

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Team Treece is here to advise you on how to position yourself for the coming year!