Markets remain optimistic that the U.S. Federal Reserve will cut interest rates this year, which could be as many as six, but with March just around the corner, it's hard to imagine a rate cut coming this soon. Many people are not sure whether it will be possible.
Yahoo Finance's Julie Hyman and Brian Sozzi speak with executives and economists at the World Economic Forum in Davos, Switzerland, and are joined by Madison Mills and Josh Lipton from the Yahoo Finance New York studio.
Some executives, such as Anne Walsh of Guggenheim Partners Investment Management, joined the campaign for the sixth rate cut in early March. Walsh sees the early March deadline as a result, but concedes that “this is more aggressive at a time when many of our peers are exiting.”
Kenneth Rogoff, former IMF chief economist, suggested that the uncertainty surrounding what will cause rate cuts remains unclear even for the Fed. “I don't think the Fed knows what it's looking for.”
“The ultimate driver of rate cuts, in my opinion, is what happens to inflation,” said Jan Hatzius, chief economist at Goldman Sachs, which will determine the pace and amount of rate cuts. It suggests that.
It's all part of Yahoo Finance's exclusive coverage from the World Economic Forum, where our team talks to top decision-makers, business, finance, and others about the world's most pressing issues and priorities for the coming year. We're talking to some outstanding leaders in politics.
Watch the full episode of Yahoo Finance Live here.
Editor's note: This article was written by Ike Ntekim