In his recent president’s message, Federal Reserve Bank of Atlanta president and CEO Raphael Bostic shares that he would favor reducing the federal funds rate before reaching the FOMC’s 2 percent inflation objective if he is confident inflation is firmly on that trajectory. “Rather than holding the federal funds rate steady until we are at the target, I would favor reducing the policy rate once I gain additional confidence that we are clearly on the path to the 2 percent objective,” he writes. Read the full essay: https://atlfed.org/3XMMl3K
Federal Reserve Bank of Atlanta’s Post
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Federal Reserve decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. #fomc #2024outlook #marketpredictions #globaleconomics #financialmarkets #cfoinsights #growth #inflation #bondmarket #treasury #currencies #rates
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GlobeSt.com: Many Bet the Federal Reserve Will Cut Rates Soon Deutsche Bank's economists are predicting the Fed will lower interest rates by 175 basis points off the current federal funds rate range. Wall Street says interest rate futures indicated Monday a 52% change the Fed will lower rates by at least 1/4th of a percentage point by May. Rate cuts in 2024 are not a given, but these predictions are something to look forward to. #realestate #cre #commercialrealestate #investmentproperty #investment #investorinsight #thefed #federalreserve #interestrates #dtmgroupcre
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Independent investment and governance advisor to LGPS schemes and charities * asset allocation advisor * Japan
The market now confidently expects interest rate cuts in 2024, but in its Panglossian view of the world is ignoring the level of financing and re-financing which western governments have to undertake during the year. The U.S. is increasingly relying on short-term financing (i.e., T bills rather than coupon-paying bonds) to do this, and I question whether that is any different from the Asset Purchase Programme they undertook during QE. The Federal Reserve may indeed have no good options left now, but it seems to me that the end-game is now increasingly clearly monetary debasement and eventually much higher inflation. #bondyields #interestratecuts #magicmoneytree #monetarydebasement
Monetary Debasement Here We Come
linchpin-advisory.com
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The Federal Reserve has paused its series of interest rate hikes after 10 consecutive months. This decision carries significant implications for our investment landscape. Let's explore strategies to navigate this new environment effectively. Read the full article to learn more! 💼 #InvestmentImplications #FederalReserve #NewOpportunities
Understanding the Fed’s Pause on Rate Hikes
share.gainfully.com
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Money market funds are offering the highest rates of return seen in over a decade… Which probably explains why they’ve caught the attention of both advisers and clients over the past year. But how long can this last for? Our Head of Investments Solutions, James Flintoft, delves into how interest rates are driving markets at the moment in his latest investment article 💻 “Interest rates remain one of the major driving forces behind markets at present. With a possible peak in rates in the rear-view mirror, expectations for the first cut and who will be the first mover amongst the Fed, the Bank of England and the ECB are being hotly debated.” Start reading: https://lnkd.in/edKVtHRr
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There is a growing belief among economists, traders, and investors that the Federal Reserve will be compelled to lower interest rates. Deutsche Bank's economists predict a reduction of 175 basis points off the current federal funds rate range, potentially bringing it down to 3.5% to 3.75%. Wall Street is reportedly gearing up for rate cuts, with interest-rate futures indicating a 52% chance of a rate reduction by May 2024, according to CME Group data. Bill Ackman, CEO of Pershing Square Capital Management, expresses optimism and suggests the Fed might start cutting rates as early as Q1 2024 due to concerns about a weakening economy. However, the timing and certainty of rate cuts remain uncertain, with factors like inflation and economic progress playing a role in the decision-making process. #interestrates #fed #2024planning #market #realestate #multifamilyinvesting
Many Bet That the Federal Reserve Will Cut Rates Soon | GlobeSt
globest.com
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John Cochrane is the author of “The Fiscal Theory of the Price Level” and in this Op-Ed piece has nicely explained the current monetary policy implementation mechanism that targets ample reserves in the banking system. That’s one of the reasons why aggressive interest rate hikes by the Fed have not caused a credit crunch in the economy. #federalreserve #inflation #ustreasuries #fiscaldeficit #quantitativetightening https://lnkd.in/dbMZaVhx
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