Renowned veteran trader, analyst and CEO of Factor LLC, Peter Brandt, took to Twitter to share his insights on the Federal Reserve’s future plans for interest rates, predicting a series of rate cuts in the coming months.
What Happened: Brandt tweeted suggesting that the three months secured overnight financing rates or SOFR $SR3_F of Dec 2024 is pricing in five to six rate cuts of 25 basis points each between now and contract expiration. He encourages those with a less dovish opinion to place their bets.
Why It Matters: Brandt’s prediction comes in the wake of the Federal Reserve’s recent rate hikes, which have pushed borrowing costs to their highest level since February 2001.
Last month, Brandt congratulated the Federal Reserve for its hawkish stance saying that another rate hike would do “wonders” for the nation’s wealth. He said that the central bank was negligent for “not aggressively raising rates in early 2021.”
Brandt has previously highlighted the negative impact of inflation on the economy, saying there is nothing “more destructive to wealth than inflation.”
Read Next: Fed Raises Interest Rates To 5.5%, The Highest Since Early 2001
Image via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4 Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
