The president of sell-side Wall Avenue agency Yardeni Analysis, Ed Yardeni, believes that the Federal Reserve will keep the course and maintain rates of interest at present ranges.
In a brand new CNBC interview, Yardeni says he doesn’t anticipate any financial coverage easing, citing a resilient US economic system fueled by strong family spending and powerful capital investments from tech firms.
“I used to be not anticipating that there could be a Fed price minimize this 12 months. And I nonetheless assume that as a result of the US economic system may be very resilient. The patron hung in there extraordinarily properly over the previous three years when the Fed raised rates of interest. And now the buyer has held up, I feel, fairly properly with the tariff uncertainty.
And capital spending, for all of the issues that uncertainty would put a hammer to capital spending, the truth is that expertise capital spending, which now accounts for over 50% of complete capital spending, stays very sturdy.”
Yardeni additionally believes that the attract and demand for US Treasuries will stay sturdy.
“The US is the most important capital market on the earth. There’s nothing prefer it. Certain, we’ve acquired numerous debt. However folks have been shopping for that debt as a result of they do need Treasuries.
So no, the worst that may occur within the Treasury market, as we noticed in 2023, is yields go as much as ranges of which individuals wish to purchase them. And so they acquired as much as 5%, folks needed to purchase them. And earlier than you recognize it, the yield got here proper again down.”
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