Inflation Data and Its Impact on Interest Rates Expectations | Wassim Jomaa in an Interview with Al Arabiya Business

Core inflation was driven by several factors, including rising rents, inflation in non-residential services which is expected to start declining in the coming months, as well as a decrease in commodity-related core inflation.

The Federal Reserve (the “Fed”) will not rush to lower interest rates unless the possibility of a recession increases. Instead, it will ensure that inflation continues to decline. Markets therefore priced in the possibility of the Fed starting to cut rates in the summer 2024 or later. It’s worth noting that markets were pricing in a rate cut of approximately 1.25%, while the Fed indicated a decrease of only 0.75%.

At The Family Office, we are currently adopting a cautious approach, but we see opportunities in recent developments, especially after the repricing in bond and stock markets.

Watch the full interview above.