Persistent inflation and hot US growth have left the Federal Reserve’s rate-cutting hopes “off track”, Bridgewater’s Bob Prince said on Tuesday, adding an influential voice to the growing chorus asking whether US rates will start to fall this year.
“So far, this year is not transpiring the way that the Fed — or interest rate markets — have described. I think it is clear the Fed is off-track now. The question is how far off track,” Prince, the hedge fund’s co-chief investment officer, told the Financial Times.
His comments came as Atlanta Fed president Raphael Bostic told Yahoo News that if progress on inflation stalls and economic growth remains strong, it is possible the US central bank may not cut interest rates at all this year. Bostic is a voting member of the Federal Open Market Committee.