The head of the Atlanta Federal Reserve, Raphael Bostic, stated to News that US interest rates will need to be maintained at a “restrictive level” and may only begin to decline “at the end of 2024.”.
The world economy has been affected in recent weeks by the expectation of a delay in US interest rate decreases, which has affected the cost of borrowing for government, particularly in the UK.
Markets anticipated a string of rate cuts in the US and throughout Europe at the start of the year.
On the fringes of the International Monetary Fund (IMF) Spring Meeting, Chancellor Jeremy Hunt informed reporters that “what happens in the US has a knock-on impact in the UK.” The US inflation report that came in somewhat higher than expected had some effect on UK market yields.
