Fed Rate Cut Hopes by March Are ‘Optimistic,’ Rajan Says
- He warns of risks if borrowing cost is kept higher for longer
- Former RBI governor bets on India’s services sector strength
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The US Federal Reserve will probably want to see inflation come down further before easing policy and any expectations of interest rate cuts by March are “overly optimistic,” India’s former central bank Governor Raghuram Rajan said.
While inflation in the US is slowing, it’s not easing at a fast enough pace that would give the Fed comfort to shift policy, Rajan, who is now a professor of finance at the University of Chicago Booth School of Business, told Menaka Doshi at a Bloomberg India Edition newsletter event in Mumbai.