Dario Perkins Sees Scenario for Fed Peak Rate Matching 2023-24 High

Dario Perkins, TS Lombard’s managing director of global macro, sees a scenario in which the Federal Reserve’s peak rate could match or exceed the 5.25%-5.50% range reached in 2023 if AI investment continues. The outcome is conditional and separate from the firm’s official forecast. TS Lombard’s official forecast calls for a 25-basis-point rate hike each quarter until something breaks. Perkins’ higher-rate scenario is not the firm’s base-case forecast. The Fed’s target range is 3.75%-4.00%. The Federal Open Market Committee (FOMC) raised it to that level on Sept. 16, effective Sept. 17.

Source: TokenPost