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The Impact of Current CPI Numbers on Interest Rates | David Darst in an Interview with Bloomberg Asharq

The Impact of Current CPI Numbers on Interest Rates | David Darst in an Interview with Bloomberg Asharq

Bloomberg Asharq hosted David Darst, CFA, Senior Advisor and Investment Strategist at The Family Office, to discuss the decline in the consumer price index (CPI) and the increased likelihood of an interest rate cut at the Federal Reserve (“Fed”) meeting in September. Below are the highlights of the interview:

Jul 18, 2024Management Insights- 1 min
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  • Inflation continues to decline, with the headline CPI increasing by 3.0% in June compared to 3.3% in May and 3.4% in April, year-over-year. On a core basis, it increased by 3.3% in June compared to 3.6% in April, year-over-year.

  • At The Family Office, we advise investors to reduce their portfolio volatility and include alternative investments in light of current developments. Investors must also look for experienced fund managers who can help them achieve solid returns and build a resilient portfolio.

  • There is a possibility that the Fed will cut interest rates twice this year and two additional times in the first half of next year.

  • Fed Chairman Jerome Powell has repeatedly said that the Fed does not want to repeat the same mistake of the 70s, when it cut interest rates and then had to raise them again. It wants to maintain the direction of interest rates after changing them and avoid fluctuations, as the change in direction impacts investors and investment planning.

Watch the full interview above.

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Since 2004, The Family Office has been the wealth manager of choice for more than 500 ultra-high-net worth families and individuals, helping them preserve and grow their wealth through customized solutions in diversified alternatives and more. Schedule a call with our financial experts and learn more about our wealth management process.


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