What to expect in 2024: Fed pivot, cooling inflation, easing growth
![What to expect in 2024: Fed pivot, cooling inflation, easing growth](https://cdn.zeebiz.com/sites/default/files/2024/01/16/276463-fed.jpg?im=FitAndFill=(1200,900))
Global growth will likely slow this year, but a dovish tilt in the Federal Reserve's stance has raised hopes for the U.S. economy and brightened the outlook for riskier assets, according to big banks.
The European Central Bank and the Bank of England sticking to their higher-for-longer rates stance, however, has blurred expectations for Europe.
Following are forecasts from some major banks and peers on economic growth, inflation, Fed policy and how they expect certain asset classes to perform.
Real GDP growth forecasts for 2024 |
||||||
|
GLOBAL | U.S. | CHINA | EURO AREA | UK | INDIA |
Goldman Sachs | 2.60% | 2.30% | 4.80% | 0.90% | 0.50% | 6.30% |
Morgan Stanley | 2.80% | 1.90% | 4.20% | 0.50% | -0.10% | 6.40% |
UBS Global Wealth Management | 2.60% | 1.10% | 4.40% | 0.60% | 0.60% | 6.20% |
Barclays | 2.60% | 1.20% | 4.40% | 0.30% | 0.10% | 6.20% |
J.P.Morgan | 2.20% | 1.60% | 4.90% | 0.40% | 0.20% | 5.70% |
BofA Global Research | 2.80% | 1.40% | 4.80% | 0.50% | 0.10% | 5.70% |
Deutsche Bank | 2.40% | 0.60% | 4.70% | 0.20% | 0.30% | 6.00% |
Citigroup | 1.90% | 1.10% | 4.60% | -0.20% | -0.30% | 5.70% |
HSBC | 2.40% | 1.70% | 4.90% | 0.50% | 0.60% | 6.00% |
The latest data showed that in the 12 months through December, U.S. consumer prices edged 3.4% higher after increasing 3.1% in November, tempering expectations of an interest rate cut in March. The pace of price rises, however, has slowed from a peak of 9.1% in June 2022. The Fed targets an inflation rate of 2%.
The U.S. central bank's policy rate currently stands in the 5.25%-5.50% range after 525 basis points of hike since March 2022. Rate cuts are seen coming as early as March.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/markets/stocks/photo-gallery-this-tata-group-stock-turned-every-rs-10000-of-investment-into-rs-11300-in-just-a-week-investors-richer-by-42722-crore-rupees-any-guesses-share-market-news-304023](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307143-tradingpexels.jpg?itok=rw4R7EfH)
A Tata group stock just turned every Rs 10,000 of investment into Rs 11,300 in just a week, investors richer by Rs 42,722 crore; any guesses?
![https://www.zeebiz.com/markets/stocks/photo-gallery-large-cap-midcap-stocks-shares-to-buy-for-long-term-check-out-targets-nifty-sensex-303617](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306716-stockks.jpg?itok=KJTrFUIK)
Stocks to buy for long term: Analysts suggest buying these 5 largecap, 4 midcap scrips; check out targets
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-retirement-planning-budget-2024-nirmala-sitharaman-announcement-how-nps-rulebook-change-can-increase-corpus-income-and-monthly-pension-by-40-compound-return-303984](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307102-indian-currency-pixabay-take.jpg?itok=kN21EW-9)
How your NPS retirement corpus and monthly pension can jump by 40% after this rule change; get details
![https://www.zeebiz.com/personal-finance/photo-gallery-senior-citizen-savings-scheme-scss-2024-interest-rate-calculator-post-office-how-to-get-inr-rs-50000-interest-retirement-planning-guaranteed-return-maturity-amount-small-savings-303930](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307042-fd-interest-file.jpg?itok=45ZbBRWM)
How much investment do you need in this senior citizen scheme to get Rs 50,000 quarterly interest? Know here
12:39 PM IST