14 November 2023
Market expectations of Federal Reserve rate cuts in 2024 might be overly optimistic. Contrary to these predictions, Fed Chair Powell suggests more hikes are likely as the fight against inflation continues. Shrinking monetary supplies contrast with soaring borrowings from the Fed, primarily supporting the banking sector rather than the broader economy. This dynamic suggests persistent inflation, with the private sector shouldering the impact of monetary contraction. If the Fed does cut rates, it could signal a significant slump in demand and deeper economic issues.