Fed To Cut Interest Rates Within The Next Six Weeks, Hays Says
Don Hays, president and chief investment strategist at Hays Advisory, told CNBC’s “Squawk Box” that he expects the Federal Reserve to cut interest rates within the next month-and-a-half.
“You’re seeing the banks get all this cautious money coming into the bomb shelter – savings accounts,” Hays said Friday. “What are they doing with it? They’re not loaning it out because they’re cautious, too. So, they’re buying Treasury Bills. The Treasury Bill today is 4.84%. If you see it drop 10% under the Fed funds target, history tells you the Fed is going to cut in the next two weeks. That’s going to happen, in our opinion, in the next six weeks.”
On Wednesday, the Federal Reserve held its benchmark rate steady at 5.25%.
He called globalization a “new animal” that’s driving exports – and earnings. He likes globalization and technology plays, including Caterpillar, Cisco Systems , and Lam Research .
