Sky-high inflation has recently shown signs of cooling after the Fed’s most aggressive monetary tightening campaign since the 1980s. Investors overwhelmingly expect the Fed to slow its pace of rate hikes over the upcoming months.
However, Christian Nolting, Chief Investment Officer of Deutsche Bank, told CNBC last week that the market’s pricing for central bank cuts in the second half of 2023 were premature. He said, “inflation is going to be lower next year, but also higher than previous years, so we will stay at higher levels, and from that perspective, I think central banks will stay put and not cut very fast.”
