U.S. Federal Reserve Chair Jerome Powell holds a press conference following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, U.S., March 20, 2024.
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 traditional transmission policy mechanism has broken, or doesn't work as well," Kassam told "Squawk Box Europe."
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.
"For now, consumers and corporates aren't feeling the pinch of higher interest rates," he added.
Persons:
Jerome Powell, Altaf Kassam, Kassam
Organizations:
Federal, Committee, Federal Reserve, CNBC, Fed
Locations:
Washington , U.S, U.S