Fed's 2019 Interest Rate Expectations vs Market's Expectations

-edited

The Fed's view of where interest rates are headed in 2019 are quite different from market expectations.

Comments (5)
No. 1-3
Tony Bennett
Tony Bennett

Everything stable ... for now.

$US gained today despite cut.

Still think something will "break" by November (likely offshore) ... then chaos.

stillCJ
stillCJ

Editor

I cannot vote because I will not sign up for twitter, so I'll vote here: no more rate changes in 2019.

Realist
Realist

I tend not to look at such short time frames as 3 months. However, the long term trend for interest rates is still towards lower rates in the future. Just as gdp growth and employment growth will continue to slow over the next few years. To counter this slowing, Trump will try to juice growth by spending more and he will want to cut taxes further. As a result, the US federal deficit will continue to rise from 1 trillion per year towards 1.5 trillion per year over the next few years.