Former Treasury Secretary Larry Summers advises caution, stating that the Fed should wait to cut interest rates until there’s 'overwhelming' data to support the decision. His comments add to the growing chorus of experts advocating for a cautious approach towards rate cuts in 2024, despite market pricing suggesting an earlier timeline.
The big questions now—when can the Fed start cutting rates and by how much? https://t.co/w1CXJAjDoA https://t.co/w1CXJAjDoA
The Fed should wait to cut interest rates until there’s 'overwhelming' data to support the decision. Watch my interview with @DavidWestin @BloombergTV's Wall Street Week tonight at 6pm ET. https://t.co/iQsrTEGPOI via @economics
In the latest @FT survey w/ @ChicagoBooth, 63% of the economists polled think the Fed will only begin to cut rates in the third quarter of next year or later and in 2024 move by just 50bps -- a stark contrast to current market pricing https://t.co/d2kYVoZTbD @evawxiao https://t.co/enOpo0h3BN
I don't think Fed would cut rates before core inflation hits 2% They're assuming we'll hit 2% by 2025 Yet the market is pricing in rate cuts by end of 1Q24 Meanwhile, companies are hiring less, firing more and credit card debt ATH (and delinquencies rising) Hmm
🔸Fed Expected To Take It Slow When Time Comes for Cuts The Fed is going to be much slower than the market expects to cut interest rates, says Phillip Nelson, head of asset allocation at investment advisor NEPC. "We are looking at one, perhaps two cuts" in 2024, he says. That…