March 1, 2024
United States:
Apollo’s Torsten Slok Says Fed Will Not Cut Rates in 2024
Apollo Management Chief Economist Torsten Slok said that a re-accelerating US economy, coupled with a rise in underlying inflation, will prevent the Federal Reserve from cutting interest rates in 2024.
“The bottom line is that the Fed will spend most of 2024 fighting inflation,” Slok wrote in a Friday note to clients. “As a result, yield levels in fixed income will stay high.”
Europe:
ECB Cutting Too Soon Would Be Worse Than Delaying, Survey Shows
Lowering interest rates prematurely would be a worse mistake for the European Central Bank than reducing them too late, according to a survey of economists who see one fewer cut now in 2024.
Almost two-thirds of respondents reckon moving too hastily to reverse the barrage of rate hikes enacted to tame inflation would carry greater dangers than waiting too long — a sentiment voiced by several members of the Governing Council.
Asia:
BOJ’s Ueda Keeps Market Players Guessing Over Rate Hike Timing
Bank of Japan Governor Kazuo Ueda is keeping his options open for the timing of a widely expected interest rate hike, a position that may fuel further market volatility as investors and economists speculate over a March or April move.
“We are not yet in a position to foresee the achievement of a sustainable and stable inflation target,” Ueda said Thursday after meeting with Group of 20 central bankers and finance chiefs in Sao Paulo, Brazil. “We will continue to seek confirmation whether the virtuous cycle between wages and price began to turn.”
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