Federal Reserve faces calls to hold interest rates indefinitely
Updated
Updated · Barron's · May 10
Federal Reserve faces calls to hold interest rates indefinitely
13 articles · Updated · Barron's · May 10
Bank of America delayed its expected first cut to mid-2027 from late 2026, while Deutsche Bank and HSBC also see rates staying unchanged.
Economists cite uncertainty from the Iran war, tariffs, immigration policy and AI over inflation and the labour market, with the Fed's target rate at 3.5% to 3.75%.
Higher-for-longer rates are boosting cash-like assets: money-market funds added $122.35bn in the week to 6 May, while four-week and 16-week Treasury bills yield about 3.67% and 3.69%.
With war and tariffs driving interest rates, has the Federal Reserve lost its ability to control the US economy?
As AI is set to slash asset management costs, which high-paying finance jobs are secretly on the chopping block?
Are regulators prepared for a financial crisis that moves at the instant speed of new tokenized money funds?