The Federal Reserve's "dot plot" released on Wednesday shows central bankers expecting a 75 basis point cut in interest rates by 2024, a significant increase from the 25 basis points expected just three months ago. Traditional markets have responded positively to this news, with all three major US stock indices rising by over 1%, and the Dow Jones Industrial Average surpassing 37,000 for the first time ever. The bond market has also rallied, with the yield on two-year US Treasury bonds dropping by about 40 basis points to its lowest level since May. However, while markets are optimistic about rate cuts, the Fed's more modest expectations suggest that a significant economic slowdown and/or inflation would be necessary to justify such cuts.