The only reason the Federal Reserve might be tempted to cut rates would be to help the U.S. cover interest payments for the national debt, according to fund manager Freddie Lait.
His comments come ahead of the Federal Reserve’s monetary policy decision on Wednesday, which could shed some light on the U.S. central bank’s rate trajectory. The Fed is widely expected to keep its benchmark overnight borrowing rate in a range between 5.25%-5.5%.
Traders are currently only pricing in about a 50% chance of a Fed rate cut taking place as early as September and expect just one quarter-percentage-point reduction by the end of the year, according to the CME FedWatch Tool.
Speaking to CNBC’s “Squawk Box Europe” on Wednesday, Latitude Investme…
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