The equity market remains unfazed by the Federal Reserve’s indication of potential rate cuts in 2024, despite initial concerns about a market correction due to conflicting rate cut projections. Recent positive economic indicators have bolstered confidence in the economy’s resilience, diminishing the likelihood of an imminent recession and reducing the probability of a rate cut in March. Despite the Fed’s clear guidance against immediate rate cuts, equities continue to reach new highs, indicating that factors beyond the Fed’s stance are currently driving market sentiment.
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