Davos execs, economists weigh in on potential Fed rate cuts

01/18/2024 04:56
Davos execs, economists weigh in on potential Fed rate cuts

The market is still optimistic about the Federal Reserve cutting rate this year, possibly as many as six times, but with March quickly approaching, many are not so sure it will happen so quickly. Yahoo Finance’s Julie Hyman and Brian Sozzi sit down with executives and economists at the World Economic Forum in Davos, Switzerland, while Madison Mills and Josh Lipton weigh in from the Yahoo Finance New York studio. Some executives are in the early-March, six-rate-cut camp, namely Anne Walsh of Guggenheim Partners Investment Management. Walsh sees the early March deadline as the outcome, but admits this is “more aggressive now that a lot of the market peers are leaving.” Kenneth Rogoff, former IMF Chief Economist, suggests the uncertainty surrounding factors for a rate cut remain unclear—even to the Fed. “I think the Fed just doesn’t know what it’s looking for.” “Ultimately the driver of rate cuts, in my view, is what happens to inflation,” states Jan Hatzius, Goldman Sachs Chief Economist, who suggests this is what will determine the pace and amount of rate cuts. It's all part of Yahoo Finance's exclusive coverage from the World Economic Forum, where our team is speaking to top decision-makers as well as preeminent leaders in business, finance, and politics about the world’s most pressing issues and priorities for the coming year. Watch this full episode of Yahoo Finance Live here. Editor's note: This article was written by Eyek Ntekim

The market is still optimistic about the Federal Reserve cutting rate this year, possibly as many as six times, but with March quickly approaching, many are not so sure it will happen so quickly.

Yahoo Finance’s Julie Hyman and Brian Sozzi sit down with executives and economists at the World Economic Forum in Davos, Switzerland, while Madison Mills and Josh Lipton weigh in from the Yahoo Finance New York studio.

Some executives are in the early-March, six-rate-cut camp, namely Anne Walsh of Guggenheim Partners Investment Management. Walsh sees the early March deadline as the outcome, but admits this is “more aggressive now that a lot of the market peers are leaving.”

Kenneth Rogoff, former IMF Chief Economist, suggests the uncertainty surrounding factors for a rate cut remain unclear—even to the Fed. “I think the Fed just doesn’t know what it’s looking for.”

“Ultimately the driver of rate cuts, in my view, is what happens to inflation,” states Jan Hatzius, Goldman Sachs Chief Economist, who suggests this is what will determine the pace and amount of rate cuts.

It's all part of Yahoo Finance's exclusive coverage from the World Economic Forum, where our team is speaking to top decision-makers as well as preeminent leaders in business, finance, and politics about the world’s most pressing issues and priorities for the coming year.

Watch this full episode of Yahoo Finance Live here.

Editor's note: This article was written by Eyek Ntekim

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