How far and how fast – all eyes on interest rates
The rate cycle has been a preoccupation of the private debt market for a while now. Initial assumptions of a smooth downward cutting cycle next year are being challenged.
Expert analysis by Christopher Faille
One widespread belief among observers of the US economy at present is that a cycle of decline in the Federal Reserve funds rate will have the intended effect of stimulating activity, to the general benefit of mid-market lenders. It is no longer as clear as it seemed to be after the Fed’s September meeting, though, whether such a cycle is now underway.
After the long-awaited rate reduction at that meeting it became a cliche to say that Fed chair Jerome Powell has “threaded the needle,” lowering inflation without inducing a “hard landing”...