Why interest rates aren’t falling so quickly

Why interest rates aren’t falling so quickly

Too early to be happy: interest rates will fall later and more slowly than many investors expected at the beginning of the year. Interest rate cuts could only come in the summer.

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It should be ready in just a month. On March 20th, the US Federal Reserve (Fed) would begin cutting interest rates. At least that was the expectation of numerous market players around the turn of the year, which was reflected in a significant decline in bond yields. Now, almost two months later, it is clear: the expectation of a turnaround in interest rates was premature; the Fed will not start cutting interest rates in March. And not later in the spring either, but only in the summer – or maybe even later.

Source: Stern

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