FT News Briefing Higher rates for even longer (and longer)
4 snips
May 2, 2024 The Federal Reserve hints at sustained high borrowing costs, shifting its tone amid disappointing inflation data. Investors remain optimistic despite this, with discussions on potential rate cuts in the future. Viking Holdings celebrates a strong market debut as the year’s second-largest IPO. Meanwhile, the abrupt exit of HSBC’s chief executive raises questions about the bank’s future strategy in China, amid ongoing geopolitical tensions and shareholder expectations.
AI Snips
Chapters
Transcript
Episode notes
Interest Rates to Remain High
- The Federal Reserve will maintain high interest rates to combat persistent inflation.
- It's uncertain when a rate cut will occur, diverging from earlier market expectations of a mid-2024 reduction.
Market Optimism
- Markets reacted positively to the Fed's decision to hold rates steady.
- Powell clarified that the next rate move is more likely to be down than up, easing market concerns.
Quantitative Tightening Slows
- The Federal Reserve is slowing the pace of quantitative tightening.
- This aims to prevent potential disruptions in the money markets.