What Happened: Fitch Ratings stated on Wednesday that tougher central bank regulations will continue to impact the economy, leading to an increase in corporate defaults in 2024, as was reported by Business Insider. The rating agency anticipates a slower pivot from the Federal Reserve than what U.S. markets are predicting, with interest rates likely to decrease by 75 basis points throughout the year.

Why It Matters: The Federal Reserve held the federal funds rate target range at 5.25%-5.5% in a move anticipated widely, marking the third consecutive meeting where rates have remained steady, likely signaling the end of the rate-hiking cycle that started in March 2022.

Despite the Fed’s optimistic stance, discussions about an economic downturn have surfaced following the aggressive interest rate hikes during the ongoing tightening phase. Data compiled by Visual Capitalist from official sources revealed that top corporate leaders are considerably more convinced of an impending recession, with an 84% prediction, even as Federal Reserve staff members assign a negligible probability to it.