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Billionaire John Paulson expects Fed to cut rates to 2.5% by end of 2025
2024-09-06 02:07
Odaily News Billionaire investor John Paulson predicts that the U.S. Federal Reserve will cut interest rates to as low as 2.5% by the end of 2025. Paulson said the Fed has been too slow in cutting rates and will take steps to lower them in the coming months. In an interview with Bloomberg TV, he estimated that the federal funds rate could fall to 3% or even 2.5% next year. He noted that maintaining high real interest rates (the gap between bond yields and current inflation rates) means that the Fed has fallen behind in easing monetary policy. Finally, he emphasized that the president and the treasury secretary's comments on economic policy are crucial. (yahoo)