The debate continues as to when the Federal Reserve will cut interest rates, breaking their higher for longer stance. Many experts believe three cuts will come within the year based on the Fed’s dot plot released in March, but with hotter-than-expected inflation data rolling in, others think the chart may already be outdated.
Former Fed Vice Chair Alan Blinder joins Market Domination Overtime to discuss the Fed’s decision making in its monetary policy and its larger affect on markets overall.
Blinder, currently a Princeton University Professor of Economics and Public Affairs, comments on the timing of rate cuts: "I’ve been saying, rightly or wrongly, for a long time, something like, middle of this year. And I still feel that way. There have been ups and downs. There have been periods where it seemed like it might be closer, periods when it might be more distant than we thought. I am still fairly comfortable with thinking the first cut comes in June. Give or take."
He continues by affirming: "The truth is, [Fed Chair] Jay Powell right now, today, doesn’t know when it’s going to come. "
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