Lates News

Allspring Global Investments senior portfolio manager Matthias Scheiber believes that the Federal Reserve is likely to maintain interest rates next week. Scheiber stated in a report, "We believe the likelihood of the Federal Reserve not cutting interest rates at all is high, but if energy prices continue to rise, we expect negative knock-on effects on consumer and business confidence." Scheiber stated that the U.S. economy is expected to achieve around 2.5% real GDP growth before the Middle East conflict. Considering the possibility of further fiscal stimulus and government debt to support the private sector before the midterm elections, Scheiber believes that the Federal Reserve is willing to see the surge in energy prices as a temporary phenomenon and will focus on economic growth.