EddieJayonCrypto
21 May 25
Ed Yardeni, president of Yardeni Research, expects the Federal Reserve to maintain current interest rates without easing. He cites a resilient US economy driven by strong household spending and significant tech capital investments. Yardeni notes that despite tariff uncertainties, consumer strength a...
Ed Yardeni, president of Yardeni Research, predicts the Federal Reserve will maintain current interest rates due to a resilient US economy supported by strong consumer spending and robust tech capital investments.Yardeni highlights that despite uncertainties such as tariffs, the US consumer has remained steady over the past three years of Fed rate hikes. He emphasizes that technology capital spending, which accounts for over 50% of total capital expenditure, continues to be very strong, defying concerns that uncertainty would depress investment.Furthermore, Yardeni points out the continued strong demand for US Treasuries, underscoring that the US remains the largest capital market globally. Despite the high levels of debt, investors consistently buy US debt because Treasury yields have risen to attractive levels, as seen in 2023 when yields approached 5% before settling back down.In summary, Yardeni sees no rate cuts for this year and expects the Federal Reserve to hold interest rates steady, backed by persistent consumer strength and vibrant tech industry capital spending along with sustained Treasury demand.