At an event on Tuesday, Federal Reserve Chair Jerome Powell hinted that rate cuts may not come as soon as investors had hoped given how stubborn inflation has been.
Blake Gwinn, the head of US rates strategy at RBC Capital Markets, thinks that is likely the case too. That’s why he reduced his rate cut expectations from three to just one cut in December. Gwinn argues that Fedspeak has changed in recent weeks, with officials no longer framing January’s hot inflation report as idiosyncratic.
On the possibility of a rate hike, Gwinn says that the bar for the Fed to hike rates is "very very high" and that the markets aren’t really entertaining the idea.
Watch the video above to hear Gwinn’s take on how the 2024 election may play a role in the Fed’s decision making.
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