The Big Picture

Vincent Boland: Fed’s hasty revision of interest rates is most dramatic shift in expectations in years

Demand for interest cuts in election year likely to see economy take centre stage in UK and US races

Interest cuts will complicate Joe Biden’s and Rishi Sunak’s re-election prospects. Picture: Getty

As recently as the beginning of last week, the view among investors was not whether US interest rates – and by extension interest rates elsewhere – would begin to fall in 2024, but when, and how many times. By the end of the week the situation had been reversed. Now the view is not when the Federal Reserve would begin cutting rates, and by how much. It is whether the Fed will cut rates at ...