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The Fed Can’t Cut Rates as Fast as Markets Want

The Fed Can’t Cut Rates as Fast as Markets Want
The Federal Reserve building in Washington. Samira Bouaou/The Epoch Times
Daniel Lacalle
|Updated:
Commentary

Market participants started the year with aggressive expectations of rapid and large rate cuts. However, after the latest inflation, growth, and job figures, the probability of a rate cut in March has fallen to 24 percent from 39 percent. Unfortunately for many, headline figures will support a hawkish Federal Reserve, and the latest comments from Fed Chair Jerome Powell suggest that rate cuts may not come as fast as bond investors would like.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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