The economic outlook supports lower interest rates despite inflation worries, potential economic downturn ahead.

From Investing.com: 2025-02-13 11:52:00

The long-term economic outlook supports lower interest rates despite a hot January. Inflation hysteria on Wall Street has led to bond and Fed Funds futures being battered. Fed Chairman Jerome Powell stated the Committee is not rushing to cut the FFR. Despite strong employment and inflation data, underlying weakness suggests a potential economic downturn. Citigroup’s U.S. Economic Surprise Index is nearing zero, indicating possible weaker economic data ahead. The correlation between rising bond yields and a stronger USD implies a drop in the economic surprise index in the coming months. The current narrative may change as time progresses.



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