By George Prior
The US Federal Reserve won’t be swayed and will raise interest rates this month despite inflation coming in cooler than expected, says the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organizations.
Nigel Green of deVere Group’s warning comes as the latest US CPI comes in lighter than economists predicted.
He says: “Despite the data showing that the battle against inflation in the world’s largest economy is being won, we expect the Federal Reserve will resume its interest rate hiking agenda this month.
“The central banks’ officials will argue that there is still work to be done to tame inflation and they are unlikely to be dissuaded from their course of action for the time being.
“While we believe that the Fed will raise rates in July, there is now less justification for further hikes later this year.”
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
The deVere CEO is urging the US central bank not to raise interest rates past July.
“Investors are increasingly concerned that the Federal Reserve could with further hikes overtighten and that would steer the US economy into a major recession.
“The central bank must also ensure the broader picture is maintained and not be too cautious by overdoing the hikes, which would trigger the US recession deeper and longer.
“As the world’s largest economy, this would clearly have a serious, negative impact on the global economy.
“The most aggressive tightening campaign in decades is not quite finished – but the tide could be turning.
“Against this backdrop, a good fund manager will help you pick out the winners and losers to help you sidestep the risks to your wealth and seize the opportunities to build it for the long-term.”
About:
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.
- COT Metals Charts: Speculator bets led by Platinum & Copper May 11, 2024
- COT Bonds Charts: Speculator bets led by Fed Funds & Ultra 10-Year Bonds May 11, 2024
- COT Stock Market Charts: Speculator bets led by DowJones & Russell 2000 May 11, 2024
- COT Soft Commodities Charts: Speculator bets led by Corn & Soybeans May 11, 2024
- Natural gas prices are rising amid falling inventories. The Bank of England expectedly kept the rate May 10, 2024
- Strong data on China’s trade balance fuels Asian indices May 9, 2024
- How does the brain think? May 9, 2024
- Target Thursdays: UK100, Wheat & EURUSD hit targets! May 9, 2024
- USDSEK: Golden cross on the horizon? May 8, 2024
- Oil prices are rising amid rumors of increased production by OPEC countries. European indices are growing amid the “dovish” position of the ECB May 8, 2024