Market Views: Will the Fed hike or cut rates next?

Expectations for the US Federal Reserve (Fed) to lower interest rates multiple times in 2024 have dramatically reversed, now hinting at the possibility of an additional rate hike. The shift in investor sentiment is being driven by sticky inflation and unexpectedly strong employment figures, challenging the initial forecast in a persistently high-interest rate environment. Previously, markets were anticipating several rate reductions throughout 2024. However, recent economic data…