Kaohoon Morning Brief – 14 December 2023

Krungsri Securities (KSS) expected Thailand’s SET Index to recover to a resistance level of 1,365-1,370 points in response to the Fed maintaining interest rate at 5.25-5.50%, while the dot plot showed three rate cuts next year. This led to lower US bond yields and dollars, while crude oil prices jumped, which was positive for an investment.


Interest rates for the U.S. remained unchanged at a 22-year high of 5.25-5.50%, saying that economic growth has slowed since 3Q23. The Fed’s dot plot also showed that most officials see rate cuts in 2024 with a median projection of three.

The Fed mentioning of rate cuts came at a surprise to the market that expected the central bank to remain muted on future moves. Still, the Fed’s projection for rate cuts is still below market expectations by half.

The market expected to see about five rate cuts next year, and could be as much as six. The first cut could be as soon as March with a 70% chance, much higher than 30-50% prior to the meeting. There is also about a 20% chance that the Fed could cut interest rate by 25 basis points next month, according to CME FedWatch Tool.


The U.S. House of Representatives voted to formally authorize its ongoing impeachment inquiry into President Joe Biden on Wednesday.