According to analysts at Nordea, the Fed's recent comments and continued strong data indicate that we may have to wait much longer for US rates to fall.
Markets are starting to realize that the next rate cuts will not resemble a normal cycle
Markets are pricing in rate cuts supported by continued strong data and comments from the Fed.
For the central bank to cut in March, we would have to see low inflation data for January and February, which does not seem unlikely, but the risk is that the Fed waits and, in the meantime, inflation begins to rise again for the increased freight rates and renewed wage pressure. In the latter case, we may not see rate cuts this year.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
