Fed Cuts Only at Halfway Mark, Marathon's Richards Says

Bruce Richards, Marathon Asset Management CEO, co-founder and chairman, says the Federal Reserve's rate-cutting cycle is "only at the halfway mark," indicating that it has 125 basis-points left to cut before reaching a neutral rate of 3%. "Jobs are weakening. And with that weakness in jobs, despite higher inflation, the Fed has now embarked upon an easing cycle that will last for some time," he adds. Richards also talks about what to expect from the next Fed chair, who will replace Jerome Powell in May. "Eight months from now, you'll have a dove take that office as the next Fed chair. They're going to bring rates almost immediately down to the neutral rate of three."