First Bermuda Securities Sees Rates Hanging Higher into 2025
5 April, 2024
U.S. Treasury yields increased this week owing to persistent inflation around 3.2% annually and continued strong U.S. economic indicators. The markets have reduced the likelihood of three cuts this year in the Fed Funds rate by the U.S. Federal Reserve, yet Chairman Jerome Powell of the Fed has said they will move as many times as it takes if economic data begins to weaken.
In our view a hard landing remains a distinct possibility for 2025 as uncertainty increases with U.S. elections approaching in November and the toll of comparatively higher rates burns through the U.S. economy, especially its commercial real estate sector. Cash and its equivalents should be held relatively high with diversification of portfolios a key to weathering a quick downturn in financial markets.
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About First Bermuda Securities Ltd.
First Bermuda Securities Ltd. (“FBS”), an exempted Bermuda company, is a strategic advisory, compliance consulting and listing services firm based in Hamilton, Bermuda. Please contact us or visit our website at www.fbs.bm for additional information. We welcome proposals to engage for mutual benefit and promise a prompt and confidential response.
