Wells Fargo economists predict that the United States will face intensifying economic vulnerabilities in 2024, with growth expected to decline materially from 2023. The financial institution anticipates aggressive interest rate cuts by the Federal Reserve in response to the challenging economic environment.

Interest rates are expected to fall to 3.75% by December 2024, according to Wells Fargo, with a further reduction to 3.25% by Q1 2025, amounting to cumulatively 225 basis point cut from current levels.

Wells Fargo's rate projections deviate significantly from current market pricing, which foresee the Federal Funds rate at 4.55% in December 2024 and 4.28% in March 2025. They are also in stark contrasts with the Federal...