Portfolio Manager Jeffrey Rosenkranz Speaks with GOBankingRates on Interest Rates and Inflation
As Jeffrey A. Rosenkranz, Portfolio Manager noted, “The Fed has not cut rates yet because doing so would have been premature and if inflation becomes entrenched, it is much harder to extinguish, so the FOMC has had to err on the side of caution and hold rates higher for longer.”
“In addition, because such a large percentage of existing mortgages were fixed at such low rates, the normal long and variable lags that monetary policy operates with look to be even longer this cycle, so the Fed has had to work harder and longer to influence behavior and take some of the air out of the economy and the labor market,” he added.
GOBankingRates on Yahoo! Finance: Why the Fed Could Cut Interest Rates in Spring 2024, According to Experts
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