Posted 12/8/2023, 4:54:00 PM
Analysts Caution Markets May Be Too Optimistic on Quick Fed Rate Cuts As Inflation Stays High
- Economy not seeing "immaculate disinflation;" Fed rate cuts will come later than markets expect according to JPMorgan manager
- Wage growth remains strong at 4%, challenging hopes that inflation will fall to 2% soon
- Morgan Stanley economist agrees inflation will remain sticky, says Fed won't cut rates until June
- Markets have rallied on prospect of cooling economy and rate cuts, but may be getting ahead of themselves
- JPMorgan manager says inflation likely to take longer to cool than markets expect; threshold to cut rates remains high