Waleed Al-Khelou, head of market research at Amana Capital, said that central banks have completed the interest rate hike phase and are moving into the target rate phase.
In an interview with Al-Arabiya, Al-Khelu added, “The most important question… when will we reach the end point?”, explaining that the Fed had said that the interest rate would be raised to outpace inflation. .
He said that the rate of inflation will be controlled by a period of stability of interest rates by the US Federal Reserve, which markets estimate as a period of 6 months.
He indicated that markets are also suggesting that rate cuts could begin in the first quarter of 2024, adding: “Market expectations are based on dealing with economic scenarios that have been fully resolved (QA), whether during the global financial crisis. or during a pandemic.
Al-Helou said that reversing the economic downturn through normal monetary policy, such as raising or lowering interest rates, requires a long period of time.
He said that the US Federal Reserve prefers to deal with an economic recession and does not prefer to deal with inflation.