The Pipe Dream of Bond Bulls
As of the time of writing, fed funds futures are fully priced for six rate cuts in 2024 to a target policy range of 3.75%-4%, with a 30% chance of seven. The options market is hardly alone in this assessment.
Ken Rogoff, the Harvard University professor who previously served as chief economist for the International Monetary Fund, said it’s a “pipe dream” that the Fed will deliver six cuts in 2024.
Cantor Fitzgerald LP Chief Executive Officer Howard Lutnick said 175 basis points of cuts was laughable.
Risk-averse policymakers aren’t going to start a series of rapid-fire rate cuts unless they really have to do so under a recessionary scenario.
Jonathan Levinost Bloomberg 17 januari 2024
Kommentarer