Fed rate cuts will be even more aggressive than expected in 2024 as unemployment surges past 5%, economist says

• The Fed will slash rates even more aggressively than expected, Pantheon Macro forecasted.
• That's due to a steadily weakening US economy, with unemployment likely to tread higher next year.
• Rate cuts will exceed 75 basis points as the jobless rate surpasses 5%, the firm said.

Fed rate cuts will be even steeper than central bankers are expecting in 2024, thanks to a steadily weakening economy and the unemployment rate climbing higher, according to Pantheon Macroeconomics.

The research firm pointed to the Fed's interest rate forecast at their latest policy meeting, with central bankers suggesting three 25-basis-point cuts are coming next year.