According to JPMorgan strategist A. J. Auden, the US stock market is preparing for a new growth, and by mid-2024, the S&P 500 index may update its historical maximum, increasing by 12% from the previous record of 4,796 points recorded in January 2022. One of the main reasons for the growth is the prospect of interest rate cuts by the US Federal Reserve. Historically low rates often stimulate the growth of the stock market, as they make borrowed funds cheaper, and this stimulates consumer and investment spending. It is worth noting that the decision to raise rates was made by many world central banks last year in response to rising inflation. However, now it seems that many of them are changing their position, becoming more optimistic about the prospects of their economies. The Fed's forecasts indicate that inflation related to personal consumption expenditures will fall to 2% by 2026. If this development of events is confirmed, it will indicate a «soft landing» of the economy, which, in turn, will have a favorable effect on the stock market.
