Current interest rates are high and within a constrained territory. It is likely that interest rates have reached their peak, and therefore we do not expect the Federal Reserve to raise rates from their current level.
Three factors should be monitored to anticipate future trends:
- Whether the Fed will cut interest rates three times this year or settle for once or twice.
- The possibility of changes in quantitative tightening (QT).
- The terminal interest rate.
It is expected that both The European Central Bank (ECB) and the Bank of England will start reducing interest rates in the summer, before the US Federal Reserve, due to the economic slowdown and declining inflation.
Watch the full interview above.