Posted 4/3/2024, 2:25:48 PM
Fed Signals Lower Likelihood of 2023 Rate Cuts, Forcing Markets to Recalibrate Expectations
- Federal Reserve officials signaling lower likelihood of interest rate cuts in 2023
- Markets had anticipated 3 rate cuts this year, now needing to recalibrate expectations
- Verdence Capital's Megan Horneman says markets adopting "more realistic stance" on Fed's capabilities
- Persistent wage growth continues posing "a problem" for Fed in controlling inflation
- Horneman believes Fed's previous dovish stance fueled economic rebound but could also drive inflation resurgence