29 November 2023
Hedge fund manager Bill Ackman anticipates the Federal Reserve may start cutting rates as early as the first quarter of 2024, sooner than the market’s mid-year expectations. Ackman cites signs of economic weakening evident in some of his companies. He argues that maintaining mid-5% interest rates with inflation below 3% results in high real interest rates, negatively impacting the economy. The shift from low to higher interest rates, especially for fixed-rate debts in businesses and real estate, could lead to a “hard landing” if rate cuts don’t occur soon.