Investors Bet Fed Will Need to Cut Interest Rates Next Year to Bolster the Economy
In rare wager, investors expect a quick U-turn on rates: more increases this year, then cuts next year as economy weakens
Investors themselves have marveled at the sharpness of the anticipated policy turn.
The Fed has cut rates within a year of raising them several times in the past, most recently in 2019 when officials cut rates by a quarter percentage point in late July after raising them the previous December.
In their latest economic projections, Fed officials estimated that rates could rise to around 3.8% next year but ultimately settle around 2.5%.
Sam Goldfarb WSJ 25 July 2022
RE: Hur kan dom tro att det efter mer än tio års nollränta skall gå så lätt att få ner inflationen utan konvulsioner för aktie- och fastighetsmarknaden?
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