It’s beginning to look more and more like the Federal Reserve could hold interest rates higher for even longer, at least according to several Wall Street experts. MUFG Head of US Macro Strategy George Goncalves examines several market pressures (^DJI, ^IXIC, ^GSPC) stemming from the potential for Fed rate cuts that may not come until late 2024.
"It gives them a down payment towards their easing which we know they want to do. They have it in their forecast, they know it’s restrictive," Goncalves says. "They don’t want to create any sore of… undue harm to the economy down the road. But if you miss the June/July window, the only reason then you would cut in September is if something progressively gets worse. That’s kind of the irony here."
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