As the stock market surges, inflation cools, and consumer spending habits shift, many investors are betting that the Federal Reserve is done with interest rate hikes and are preparing for a soft landing scenario. Some experts are going so far as to say that the Fed will cut rates in 2024.
Mahoney Asset Management CEO Ken Mahoney joins Yahoo Finance to discuss what investors need to pay attention to during periods of uncertainty and why cutting rates may not be in the Fed’s best interest.
“A lot of people are talking about these rate cuts next year, I don’t see that. Again, I know Fed fund futures have shown by May maybe a rate cut or two, [but] I do believe it’s going to be higher for longer,” Mahoney states. “They may not raise rates, but I think they’re going to keep it longer. Be careful what you ask for — if you ask for rate cuts, what’s a company with rate cuts? Probably a negative GDP print.”
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
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Here’s one that will make your hair stand on end: The US Treasury closed the books on FY 2023, bringing the four-year cumulative deficit to $9.0 trillion!
That’s right. During the last 1,461 days (FY 2020 thru FY 2023), Uncle Sam has generated $6.2 billion of red ink each and every day including weekends, holidays and snow-days. For anyone keeping score at home, that’s $4.2 million of red ink per minute.