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[Analyst: Federal Reserve Will Not Cut Interest Rates In 2025] January 22, Abp Invest Founder And Chief Investment Officer Thanos Papasavvas Stated That The Market'S View On The Federal Reserve'S Policy Rate Under President Trump In 2025 Is Incorrect, And The Resilience Of The U.S. Economy And Trump'S Policies Will Lead To A Fed Tightening. He Also Stated That He Does Not Believe The Fed Will Cut Rates In 2025, Nor Does He Believe The Fed Has Completed Its Hiking Cycle. Instead, He Expects The Resilience Of The U.S. Economy And Trump'S Policies To Raise Inflation Expectations And Force Powell To Start Hiking Rates From September.Papasavvas' Reasoning Is Based On Three Key Factors. The First Is The U.S. Economy. Leading Economic Indicators As Well As Data On Consumer Confidence, Corporate Profits, And Service Sector Activity Indicate That Since August Last Year, The U.S. Economy Has Been In A Clear Expansion Mode. The Second Factor Is Trump'S Policies. Combined With Economic Resilience, It Is Expected That These Policies Will Lead To Rising Rates. The "Known Unknowns" Are What Policies Trump Will Implement, How Forcefully He Will Pursue These Policies, And When He Will Implement Them.The Third Factor Is The Fed'S Credibility. If The U.S. Economy, Coupled With Trump'S Policies, Does Not Create Upward Inflation Pressure, It Is Either Because The Economy Unexpectedly Tumbles Or Because Treasury Secretary Nominee Janet Yellen Encourages Trump To Adopt More Orthodox Policies, In Which Case Papasavvas Does Not Believe The Fed Will See The Need To Hike Rates.

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