March Fed pivot ruled out, May rate cut less likely: Vikram Sahu

The tight labour market has dashed expectations of interest rate cuts by the US Federal Reserve (Fed) in March as well as May. The US central bank will start reducing rates in June, says VIKRAM SAHU, global head of equity research at BofA Securities. In an interview with Samie Modak, Sahu says the US elections and Fed pivot will benefit emerging markets (EMs) this year. Edited excerpts:

What headwinds and tailwinds are currently impacting global equities?
 

Our economics team anticipates a mild deceleration in global growth this year, followed by a gradual recovery in 2025.

We believe a hard landing in the