Forbes on Nostr: Powell Says Only 3 Rate Cuts In 2024—But Market Still Doesn't Buy It ========== ...
Powell Says Only 3 Rate Cuts In 2024—But Market Still Doesn't Buy It
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Federal Reserve Chairman Jerome Powell stated that the central bank views a modest reduction in interest rates as the most likely scenario for 2024, with the first rate reduction not likely to come as soon as next month. However, investors remain unconvinced and believe that the Fed will ultimately slash interest rates more quickly than Powell suggests. Futures contracts indicate a 90% chance of a full percentage point or more rate cut this year. The dissonance is due to the Fed's focus on tracking inflation progress on an annual basis, while investors are pricing in growth-stimulating conditions associated with rate cuts. Former President Donald Trump has criticized Powell, accusing him of cutting rates to help the Democrats in the upcoming election, but Powell denies any political motivations and emphasizes the Fed's independence.
#FederalReserve #InterestRates #JeromePowell #Inflation #Investors #RateCuts
https://www.forbes.com/sites/dereksaul/2024/02/05/powell-says-only-3-rate-cuts-in-2024-but-market-still-doesnt-buy-it/
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Federal Reserve Chairman Jerome Powell stated that the central bank views a modest reduction in interest rates as the most likely scenario for 2024, with the first rate reduction not likely to come as soon as next month. However, investors remain unconvinced and believe that the Fed will ultimately slash interest rates more quickly than Powell suggests. Futures contracts indicate a 90% chance of a full percentage point or more rate cut this year. The dissonance is due to the Fed's focus on tracking inflation progress on an annual basis, while investors are pricing in growth-stimulating conditions associated with rate cuts. Former President Donald Trump has criticized Powell, accusing him of cutting rates to help the Democrats in the upcoming election, but Powell denies any political motivations and emphasizes the Fed's independence.
#FederalReserve #InterestRates #JeromePowell #Inflation #Investors #RateCuts
https://www.forbes.com/sites/dereksaul/2024/02/05/powell-says-only-3-rate-cuts-in-2024-but-market-still-doesnt-buy-it/