Despite what Jerome Powell and the Federal Reserve say, the US central bank will be cutting interest rates this year as bouts of banking turmoil squeeze credit conditions and force an end to tight monetary policy, according to former PIMCO chief economist Paul McCulley.
In an interview with CNBC on Wednesday, McCulley pointed to the Fed’s 25 basis-point rate hike, which lifted the Fed funds rate to a target range of 5-5.25%.
