Gary Siegel

COVID made predicting the economic future even more difficult. While calls for a recession and rate cuts for this year didn't pan out, here's what experts see for 2024.

The Federal Open Market Committee's Summary of Economic Projections probably won't offer the 130 basis points of cuts next year that the market expects.

Voters approved several billion-dollar-plus bond referedums before them.

This could be the first time the bond market has posted three consecutive negative total return years, according to John Hancock Investment Management Co-Chief Investment Strategist Matt Miskin.

"Despite the breathtaking selloff in longer rates, Barclays' macro strategists see no clear catalyst to stem the bleeding," Barclays strategists said. "Data are unlikely to weaken quickly or enough to help bonds."

With the Federal Open Market Committee expected to skip an interest rate hike, all eyes turn to the Summary of Economic Projections and Chair Powell's remarks.

"Part of the mission of the New York Fed is making the U.S. economy stronger and the financial system more stable for all segments of society," Timothy Little said, "and I really feel the municipal market is a critical component of that."

Another day of mixed inflation data led Treasury yields to rise but munis mostly stayed put after underperforming a UST rally earlier in the week. The market is also focused on the $9 billion of redemption flows coming on Tuesday.

Refinitiv Lipper reported $278.559 million of inflows into municipal bond mutual funds for the week ending Wednesday, led by exchange-traded funds.

After July's hike, analysts are mixed on whether the Federal Open Market Committee is done raising rates.