Steve Grasso: Fed’s focus on long-term rates could worsen U.S. deficit situation

Steve Grasso: Fed’s focus on long-term rates could worsen U.S. deficit situation
Fed’s rates may worsen U.S. deficit

Steve Grasso, director of institutional sales at Grasso Global, draws attention to the U.S. Federal Reserve's mandate of moderating long-term interest rates and warns that maintaining higher rates could accelerate the growth of the U.S. deficit due to increasing interest costs.

Grasso points out that recent declines in CPI, a stagnant PCE, and a lackluster PPI reinforce his view that the Fed should consider rate cuts.

Steve Grasso previously highlighted Meta’s $16.7 billion settlement as a move that reduced legal risk versus a far larger $1 trillion exposure and could prompt a relief rally. Details of the case were reported in Meta settles for $16.7 billion, Steve Grasso notes. Grasso’s recent comments continue his focus on significant financial developments affecting institutions.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.