# The FED's first rate cut - Cross-asset outlook | Julius Baer

> The Fed's first rate cut has given it a faster pace of easing than peers such as the ECB, which narrows the US rate advantage. The analysis expects the Fed to cut by about 75 basis points more before year-end, with the dollar's interest rate advantage narrowing over time.

- Date: 2024-09-23 · published 2024-09-23T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/28509-the-fed-s-first-rate-cut-cross-asset-outlook-julius-baer
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A narrowing rate gap can gradually weaken the dollar, but the analysis argues it is not enough alone to drive sustained dollar weakness, so the net effect on commodity prices is limited.

## Read by commodity

- DXY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-02-16 | [Dollar steady after producer prices push back on Fed rate cut outlook](https://feedsoft.ai/events/31574-dollar-steady-after-producer-prices-push-back-on-fed-rate-cut-outlook.md) | -0.1% | -0.7% |
| DXY | 2023-11-16 | [Dollar steady as U.S. jobless claims boost Fed rate cut bets](https://feedsoft.ai/events/10103-dollar-steady-as-u-s-jobless-claims-boost-fed-rate-cut-bets.md) | -0.3% | -1.2% |
| DXY | 2018-12-20 | [US Federal Reserve raises rates and trims outlook for 2019 rate increases  \| The National](https://feedsoft.ai/events/61493-us-federal-reserve-raises-rates-and-trims-outlook-for-2019-rate-increases-the.md) | -0.1% | -1.1% |
| DXY | 2024-07-10 | [Why the Fed cutting interest rates may weaken the U.S. dollar](https://feedsoft.ai/events/29459-why-the-fed-cutting-interest-rates-may-weaken-the-u-s-dollar.md) | -0.6% | +0.2% |
| DXY | 2019-09-18 | [Fed gets more divided as three members vote against rate cut](https://feedsoft.ai/events/56975-fed-gets-more-divided-as-three-members-vote-against-rate-cut.md) | +0.2% | -0.3% |

## Sources

- juliusbaer.com: https://www.juliusbaer.com/en/insights/market-insights/market-outlook/the-feds-first-rate-cut-cross-asset-outlook/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.