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

https://www.wsj.com/articles/investors-bet-fed-will-need-to-cut-interest-rates-next-year-to-bolster-the-economy-11658694486

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?