Bank of America: Fed may cut interest rates three times in 2024, dollar weakens

Mark Cabana, head of U.S. interest rate strategy at Bank of America, said that if the dot plot shows that the Federal Reserve will cut interest rates three times in 2024 (i.e., the base scenario of BofA economists), then the 2-year U.S. Treasury bond will rise by 5 basis points. , the yield curve will steepen in a bear market, the dollar will weaken, and risk appetite will persist. He believes the Fed's forecast will be "a big deal and the market will react in either direction." Additionally, a survey of interest rates and FX clients showed that 68% of respondents said the Fed would maintain three interest rate cuts this year (the survey ended last week).