Steve Forbes: Federal Reserve Unlikely to Raise Rates in Near Term
Steve Forbes, chairman of Forbes Media, predicts that the Federal Reserve will not increase interest rates in the next few months. He suggests that the Fed will pause due to the conflicting economic data in the United States. While certain indicators are weakening, such as the labor market, the services sector report remains positive. This mixed picture gives the Fed an excuse to maintain the status quo.
The Federal Open Market Committee’s next meeting is scheduled for September 19 to 20. According to the CME’s FedWatch tool, there is a 92% chance that the central bank will keep rates unchanged after the September meeting. However, the probability of a rate hike increases to 38.4% after the November meeting. The Fed began aggressively raising rates in March 2022 as inflation reached its highest levels in 40 years.
Steve Forbes on Potential Government Shutdown and the 2024 Elections
Forbes believes that a potential government shutdown is looming in the United States. If Congress fails to pass spending legislation by the end of the month, funding for the federal government will run out, resulting in a shutdown on September 30. Forbes suggests that Washington will wait until the deadline before reaching a deal, but warns of the risks involved. He also anticipates that the 2024 elections will focus on economic issues, such as the state of the economy, crime, and foreign policy, particularly regarding Washington’s stance on the global stage and its approach towards Ukraine.
