Here’s Why This Leading Global Macroeconomist Believes the “Fed Will Pivot and the Trajectory of Interest Rates Will Change”
Komal Sri-Kumar, global macroeconomist and president of Sri-Kumar Global Strategies appeared on CNBC’s ‘Squawk Box’ this morning to discuss the Federal Reserve’s aggressive rate hikes campaign and the impact it’s having on overall financial markets.
During the interview, Sri-Kumar gave his prediction on the Fed’s next move and where he thinks interest rates are headed, stating:
“With the Fed’s excessive easing of 2021, with an excess of tightening in 2022, I’ve been saying to you it will lead to a credit event, and it will cause the Fed to pivot. So, I think the Fed is now going to pivot. So, which is no different from before, and therefore, the trajectory of interest rates is also going to change. I’m anticipating that the 10-year is now going to go to 3% and go lower. The 2-year, which is just over 4%, will also go down below.”
Watch the full video to hear when Sri-Kumar thinks the Fed will start cutting interest rates.