Central Banks Expected to Cut Interest Rates

UBS analysts project the S&P 500 could reach 5,900 by year-end and 6,200 by mid-2025, anticipating three interest rate cuts from the Federal Reserve this year. Fed Chair Powell is expected to clarify future policy directions at the Jackson Hole meeting, with potential for front-loaded cuts at remaining meetings in 2024. In contrast, the Bank of England is only expected to cut rates once more this year, reflecting cautious monetary policy due to persistent inflation concerns. Meanwhile, Sweden's central bank is set to lower its policy rate to 3.50% imminently, with expectations for additional cuts by year-end, amid easing inflation pressures. The global trend shows central banks, particularly in the U.S. and Europe, adjusting rates in response to economic conditions, albeit at varying paces.