The U.S. Federal Reserve will possible lower rates of interest by a cumulative 0.75 proportion factors to 1 level in 2024, funding strategists mentioned Wednesday. The Fed will possible obtain a so-called “mushy touchdown” because it navigates rate of interest coverage, they mentioned.Federal Reserve Chairman Jerome Powell prepares to testify earlier than the Senate Banking, Housing and City Affairs Committee on March, 7 2024. Kent Nishimura | Getty Pictures Information | Getty ImagesWest Palm Seaside, Fla. — The U.S. Federal Reserve is prone to begin reducing rates of interest by the top of second quarter regardless of latest “hotter than anticipated” inflation information, in response to Kristina Hooper, chief world market strategist at Invesco.The U.S. economic system can also be prone to dodge recession because the Fed calibrates interest-rate coverage, she and different strategists mentioned Wednesday at Monetary Advisor Journal’s annual Put money into Ladies convention in West Palm Seaside, Florida. The Fed has raised borrowing prices for customers and companies to rein in excessive inflation through the pandemic period. That has pushed up charges for mortgages, bank cards, auto loans and different types of lending.Extra from Ladies and Wealth:This is a have a look at extra protection in CNBC’s Ladies & Wealth particular report, the place we discover methods ladies can enhance earnings, save and benefit from alternatives.Inflation has declined considerably from its peak in mid-2022. Nevertheless, it is nonetheless effectively above the Fed’s 2% goal stage.The query has develop into, at what level — and the way shortly — does the central financial institution begin to lower charges to be able to keep away from plunging the economic system right into a downturn?Fed chair Jerome Powell mentioned final week that the Fed might not be far off from throttling again.Regardless of hotter-than-expected inflation information issued this week, the central financial institution is prone to begin decreasing borrowing prices by the top of June, with cumulative cuts of 0.75 proportion factors or 1 level in 2024, Hooper mentioned.Historical past could also be a tenet, she mentioned. The Fed final raised rates of interest in summer season 2023; in prior interest-rate-hiking cycles, the Fed started reducing charges about 8½ months later, Hooper mentioned.Jenny Johnson, president and CEO of Franklin Templeton, additionally expects the central financial institution to start reducing charges this yr, although within the second half of 2024 at Fed coverage conferences in July or September.Forecasts have modified from prior months.Moira McLachlan, senior funding strategist in AllianceBernstein’s wealth methods group, mentioned the agency had earlier anticipated 5 or 6 cumulative price cuts this yr, however now expects three or 4.The agency’s “base case” is cumulative cuts of 1 proportion level in 2024, she mentioned Wednesday.Strategists anticipate the U.S. to dodge a recession because it navigates interest-rate coverage, experiencing what’s identified in financial parlance as a “mushy touchdown.””A mushy touchdown is our greatest guess by way of the place we will be,” McLachlan mentioned.”We’re prone to keep away from a recession,” Hooper echoed.”I do fear [the Fed] could also be too late to begin reducing,” she mentioned.