Vanguard predicts that the European Central Bank will begin to lower interest rates in June, which is different from expectations for the Federal Reserve, which is expected to remain unchanged for the rest of the year. Although the ECB's policies usually lag behind those of the Fed, "this time is different." The institution stated: "The domestic conditions in the euro zone are different, which is enough to prove that there are differences in monetary policy." Refinitiv data shows that the currency market expects the Federal Reserve to lower interest rates by a cumulative 35 basis points by 2024, while the European Central Bank will lower interest rates by a cumulative 62 basis points.