TALLAHASSEE, Fla. — While many economists suggest that The Federal Reserve will ease into a series of quarter-point or half-point cuts to the Fed Funds rate starting today, Greg Wirthman, senior vice president and chief investment officer for Southeast Corporate here makes a bolder prediction.
Wirthman said the Fed is likely to make a rate cut of 50 basis points today. Wirthman spoke with CU Timesgross domestic product, grew at an annual rate of 0.6% in the fourth quarter. GDP is a picture of overall economic activity, adjusted for inflation. before the latest Commerce Department report that the nation's
"I think low rates will last for a while. I think we'll see lows near the record lows we had in 2003," he said. "The Fed will act aggressively to push the front end of the curve. I think we'll end up with a Fed Funds rate of 2%-2.5%."
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