Key points of IWM’s 3Q2024 Market and Economic Review
- Following the U.S. Federal Reserve’s interest rate cut of 0.50%, we expect the Fed to cut its rate target by an additional 50 basis points this year, ending at 4.25%-4.50%.
- We foresee further rate cuts in the U.K. and Euro area, with core inflation projected to reach the BOE’s and ECB’s 2.00% targets in 2025.
- Due to the sluggish domestic demand, China’s target of 5.00% economic growth by year-end is at risk. We believe this target will still be met provided that a sufficiently timely policy response occurs.