The US Federal Reserve has many questioning when the central bank will alter their course or raise the benchmark rate. The Fed has expressed a desire to reduce inflation to 2%, and that any increases in federal funds rates could help to achieve this goal. However, Zoltan Pozsar, an American macroeconomist, predicts that the central banks will start up quantitative easing (QE) by summer. Bill Baruch, an executive at Blue Line Futures Brokerage of stocks and commodities, predicts that the Fed will stop rate increases in February.
Experts Can Weigh In on Whether Rate Increases Should Continue or Pause with Quantitative Easing
Inflation in the US saw a significant spike in last year’s sales, but has since slowed. After analysts predicted seven rate hikes by the central bank, the course of events is likely to change in this year. In an interview with Kitco News, Bill Baruch told Kitco Producer/Host David Lin that the US Federal Reserve is most likely to pause tightening in February. Baruch emphasized falling inflation and delivered manufacturing data to back up his forecast.
“I think there’s a good chance we won’t see any Fed hike in February,” Baruch said to Lin. “We could see something from them that would surprise the markets in the first week of February.” Nevertheless, Baruch highlighted that markets would be “volatile” but a strong rally would follow. Baruch declared that the rate of growth was increasing. “We were aggressive” he said, “there were signs in 2021 that the economy was ready to slow down.” Baruch added:
But with the Fed raising rates, the market tanked.
Repo Guru Predicts Fed QE Will Resume in the Summer Under the “Guise” of Yield Curve Control
Analysts are uncertain if there will be any changes to the Federal Reserve’s plans to raise the federal funds rate. Bill English, a professor of finance at the Yale School of Management, told a bankrate.com spokesperson that it is difficult to tell the truth about the situation. According to plans, the rate is to be raised by 2023.
“It’s not hard to imagine scenarios where they end up raising rates quite a bit next year,” English said. “It’s also possible that they end up cutting rates further if the economy really slows down and inflation goes too low. It’s hard to be confident in your perspective. The best thing you can do
