Don't expect US Fed to cut rates before July next year: Citi's Robert Sockin
The Global Economist at Citi said although it is uncertain when the interest rate cuts in the US will begin, he expects it to be deeper than the Fed's guidance.
Robert Sockin, Global Economist at Citi does not anticipate any rate cuts in the US until July next year.
Sockin says although there is uncertainty around when the rate cuts start, he expects the cuts to be deeper than the Fed is guiding.
"...it's entirely possible, given Fed Chair Powell’s (recent meeting) communication, if the data continues to cooperate, then the Fed starts easing early next year,” he said.
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The US Federal Reserve on Wednesday (December 13) kept its key interest rate unchanged for a third straight time, a sign that it is likely done raising rates after having imposed the fastest string of increases in four decades to fight painfully high inflation.
The Fed’s policymakers also signalled that they expect to make three quarter-point cuts to their benchmark interest rate next year, fewer than the five envisioned by financial markets and some economists.
Responding to the US Federal Reserve's decision on CNBC-TV18, Simon Baptist, Chief Economist at the Economist Intelligence Unit, remarked, “Even if there are three rate cuts next year, rates are still going to be at very elevated levels by the end of 2024.”
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Dec 14, 2023 1:43 PM IST
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