{"id":8102,"date":"2024-04-10T13:50:47","date_gmt":"2024-04-10T19:50:47","guid":{"rendered":"https:\/\/es.middlemen.network\/?p=8102"},"modified":"2024-04-10T13:53:02","modified_gmt":"2024-04-10T19:53:02","slug":"fed-rate-cuts-on-hold-as-inflation-heats-up-again","status":"publish","type":"post","link":"https:\/\/es.middlemen.network\/en\/fed-rate-cuts-on-hold-as-inflation-heats-up-again\/economia\/middlemennetwork\/","title":{"rendered":"Fed Rate Cuts on Hold as Inflation Heats Up (Again)"},"content":{"rendered":"

Investors Dial Back Expectations After String of Hot Inflation Data<\/strong><\/span><\/p>\n

This article explores the dramatic shift in investor expectations for Federal Reserve interest rate cuts in 2024.<\/p>\n

At the year’s beginning, the consensus anticipated six cuts totaling 1.5 percentage points. However, a string of higher-than-expected inflation readings and a strong jobs report have upended those predictions.<\/p>\n

Swap contracts now suggest the Fed rate will only be 40 basis points lower by year-end compared to the current 5.33%. Options traders are even betting on just one cut this year, and Wall Street banks are revising their forecasts.<\/p>\n

Treasury yields across maturities have surged, with the policy-sensitive two-year yield jumping 22 basis points and the benchmark 10-year note exceeding 4.5% for the first time since November.<\/p>\n

These developments follow the release of the third consecutive higher-than-expected inflation report, coupled with a robust March jobs report. As recently as early March, markets anticipated three Fed cuts this year, starting in June.<\/p>\n

“It appears we’re in a situation where inflation might settle around 3%, prompting the Fed to hold steady,” says Campe Goodman, fixed income portfolio manager at Wellington Management Co.<\/p>\n

The strong economic data and persistent inflation pressures are forcing a reevaluation by everyone, from Wall Street strategists to Fed officials themselves. Despite interest rates exceeding the presumed neutral level by more than double, inflation remains a stubborn challenge.<\/p>\n

While Goldman Sachs postponed their cut forecast to July from June, Barclays now predicts only one reduction this year. Former US Treasury Secretary Lawrence Summers, a Bloomberg Television contributor, warns that markets must “seriously consider” the possibility of the Fed raising rates again.<\/p>","protected":false},"excerpt":{"rendered":"

Investors Dial Back Expectations After String of Hot Inflation Data<\/p>","protected":false},"author":1,"featured_media":8103,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_eb_attr":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"_joinchat":[],"footnotes":""},"categories":[83,14,8],"tags":[90,143,89,144],"class_list":["post-8102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-comercio","category-cryptos","category-economia","tag-federal-reserve","tag-inflation","tag-interest-rates","tag-treasury-yields"],"acf":[],"_links":{"self":[{"href":"https:\/\/es.middlemen.network\/en\/wp-json\/wp\/v2\/posts\/8102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/es.middlemen.network\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/es.middlemen.network\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/es.middlemen.network\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/es.middlemen.network\/en\/wp-json\/wp\/v2\/comments?post=8102"}],"version-history":[{"count":1,"href":"https:\/\/es.middlemen.network\/en\/wp-json\/wp\/v2\/posts\/8102\/revisions"}],"predecessor-version":[{"id":8104,"href":"https:\/\/es.middlemen.network\/en\/wp-json\/wp\/v2\/posts\/8102\/revisions\/8104"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/es.middlemen.network\/en\/wp-json\/wp\/v2\/media\/8103"}],"wp:attachment":[{"href":"https:\/\/es.middlemen.network\/en\/wp-json\/wp\/v2\/media?parent=8102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/es.middlemen.network\/en\/wp-json\/wp\/v2\/categories?post=8102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/es.middlemen.network\/en\/wp-json\/wp\/v2\/tags?post=8102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}