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
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