Citadel Securities Sees Only Quarter-Point Rate Cut for 2024
- Michael de Pass says a 50-basis-point reduction as too much
- Concern should turn to inflation not hitting target, he adds
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Citadel Securities says a strong US economy and sticky inflation will lead the Federal Reserve to cut interest rates only one more time in 2024.
“I’ll go out on a limb and say we only end up seeing 25 basis points of cuts for the rest of year,” Michael de Pass, global head of rates trading at Citadel Securities, said in an interview with Bloomberg Television. The market “is still implying 50 basis points of cuts for this year. When we look at it, whether it’s the strength of the underlying economy or the stickiness on the inflation front, that feels a bit too high.”