4min chapter

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The European Central Bank Goes On The Offensive | Daniel Neilson (LIVE)

Forward Guidance

CHAPTER

Will the Fed Cut Interest Rates or Will It Be in Swap Lines?

The Federal Reserve is already extending swap lines to the Swiss national bank. The Fed has lots of channels for intervening and you would expect that interest rate rises would stop Maybe maybe interest rates will come back down. However, I think that's not That's not the likely scenario over the next little bit because the Fed has just got done Adding a huge amount of liquidity. Most of that has gone into the US financial system and even into US household balance sheets. So there's actually a lot of financial resilience still there in the US financialsystem.

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