The U.S. economy could be headed for stormy waters in 2025 if the Federal Reserve does not take action soon on interest rates, State Street's head of investment strategy in EMEA said Tuesday.
"The problem is, if rates stay at this level until say 2025, when a big wall of financing is due, then I think we will start to see more things break," Kassam said. Altaf Kassam told CNBC that classic monetary policy mechanisms had"broken," meaning that any changes made by the Fed will now take longer to trickle down into the real economy — potentially delaying any major shocks.
As such, the impact of, for example, sustained higher interest rates may not be felt until further down the line when they come to refinance.
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