Traders of interest rate derivatives predict significant rate cuts by the end of next year, with most institutions expecting the Fed's first rate cut to occur in June 2024 ¹. The total amount of interest rate cuts forecasted for 2024 is around 100 to 125 basis points, which would bring the Federal Funds Rate to approximately 4-4.25% ¹. However, some institutions like UBS, Bank of America, and Goldman Sachs expect the first rate cut as early as March ¹.

*Institutional Forecasts for Interest Rate Cuts in 2024:*

- _J.P. Morgan_: First rate cut in June, total cuts of 100-125 basis points

- _Deutsche Bank_: First rate cut in June, total cuts of 100-125 basis points

- _Morgan Stanley_: First rate cut in June, total cuts of 100-125 basis points

- _UBS_: First rate cut in March, total cuts of 100-125 basis points

- _Bank of America_: First rate cut in March, total cuts of 100-125 basis points

- _Goldman Sachs_: First rate cut in March, total cuts of 100-125 basis points