Nordea Bank: US monetary policy has entered a new phase, interest rate cuts depend on inflation and the labor market
The news from Mars Finance is that the Chief Credit and Interest Rate Strategist of the Nordic United Bank, Lars Mouland, stated that the US monetary policy has entered a new stage, and rate cuts depend on lower inflation levels or a weaker labor market.
The market's pricing of the Fed's interest rate path is close to what it considers a fair level, but the rates may be higher than this level. Long-term rates are around 4%.
If inflation cannot return to 2%, the interest rate needs to be set in a restrictive area.
