Investors should not expect a cut in interest rates until 2024 thanks to a strong U.S. economy and the potential for a delayed recession, according to the chief global strategist at Principal Global Investors. Seema Shah told CNBC Friday that a tight labor market, fueling inflation, means that the previously predicted third-quarter recession for the U.S. economy will likely be delayed until later in the year.
The 1970s saw double-digit rates of inflation in the United States. As a result, the U.S. central bank was forced to raise interest rates to 20% after inflation initially dipped in the mid-70s but rose again more strongly later in the decade. "The one big takeaway is that for the Federal Reserve, they clearly have a lot more work to do," Shah, a strategist at Principal, an asset manager with more than $700 billion under management as of the end of 2021.
Only after crashes ! 😂📉🔥
The yield curve is insane. The 4-week T-Bill yield is higher than the 2 year note and is higher up all the way up to the 30 year bond. Plus the Fed’s balance sheet is still over 8 trillion meaning that excess money supply is still sloshing around in the economy. We’re fucked!
Can’t cut rates when the whole world is unloading the US debts 😎
Let me guess when unemployment reaches above 4%?
It may rain soon. I’m just not sure when.
My pea brain compared to their enormous intellect, doesn't understand, how raising rates, taking more of our money in cred card & mortgage fees, to banks as profit, us poorer is THE fix-all. Biden says '400 more billionaires have been created in the past 2 yrs'. Genius.
Bullish. When this is near . Bullish
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New bull market in stocks won't start until Fed bails out US governmentThe next bull market in stocks won't kick off until the Fed is forced to bail out the US government, Bank of America says
Source: BusinessInsider - 🏆 729. / 51 Read more »
The Fed is 'behind yet again' as inflation means bad news for stocks, bondsThe Fed is 'behind yet again' as hot inflation data signals bad news for stocks, bonds and economy, Mohamed El-Erian says It’s one month my God
Source: BusinessInsider - 🏆 729. / 51 Read more »