In a world where information, money, and asset prices accumulate faster than ever in history, one key element of financial markets remains consistent - forecasts. Regardless of whether the conversation is about economists' forecasts on inflation or where the S&P index will end up at the end of the year, experts' predictions tend to be slow to change their views, despite the compelling evidence that may be against them.
For example, economists at City bank continue to insist on a decrease in federal funds rates to 3.25% by the end of the year, which is equivalent to five reductions in a quarter percentage point to December.
"In conditions where markets change before our eyes, we still strive to predict the future, and often we see that experts do not rush to change their viewpoint," said financial markets expert Jimmy McIver.
