Markets are forecasting a 45% probability that by the end of January 2025, the federal funds rate will be in the 3.75% to 4.00% range as of October 3, 2024. Currently, it's at 4.75% to 5.00%. Market-based forecasts are sometimes accurate, often not, and typically volatile. But are the expectations and desires of markets realistic?
Apollo Global Management chief executive officer Marc Rowan thinks the forecast is ill-advised and hopes the Federal Reserve doesn't keep cutting rates, as he told Bloomberg TV on Wednesday.
"Financing is available," said Rowan. "Real estate prices are going up. It is not clear we need more rate cuts."
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