The president of Sell-Side Wall Street Firm Yardeni Research, Ed Yardeni, is of the opinion that the Federal Reserve will remain the course and will keep interest rates at the current level.
In a new CNBC interview, Yardeni he says Does not anticipate a relaxation of monetary policy, referring to a resilient American economy that is fed by robust household expenses and strong capital investments from technology companies.
“I did not expect that a FED rate would be reduced this year. And I still think that because the American economy is very resilient. The consumer has hung extremely well in the last three years when the Fed raised the interest rates. And now the consumer has sustained, I think, fairly well with the tariff security.
And capital expenditures, all the worries that uncertainty would give a hammer to capital expenditures, the reality is that technology capital expenditures, which are now good for more than 50% of the total capital expenditure, remains very strong. “
Yardeni also believes that the allure and the demand for American treasury will remain strong.
“The US is the largest capital market in the world. There is nothing like it. Of course we have a lot of debts. But people have bought that debt because they want treasuries.
So no, the worst that can happen in the treasury market, as we saw in 2023, is that the proceeds go to levels that people want to buy them. And they got up to 5%, people wanted to buy them. And before you know it, the yield immediately came down again. ‘
https://www.youtube.com/watch?v=1DolVP5VA9U
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