Michael Milken Predicts Fed Will Resist Rate Cuts Amid Inflation Concerns

Drawing from 1970s history, the 'junk bond king' anticipates a disciplined approach to monetary policy ahead of the Federal Open Market Committee's decision.

• Michael Milken, known as the king of junk bonds in the 1980s, predicts the Federal Reserve will not cut interest rates until inflation is firmly under control.
• Milken believes the Fed will learn from the 1970s, when hasty policy decisions led to significant inflation and overnight rates of up to 21%.
• Milken's comments come ahead of the Federal Open Market Committee's rate decision, which is expected to maintain the current interest rates.
• Market participants were hopeful for signs that rate hikes were over, and that rate cuts would commence in the first half of 2024.
• Despite past legal troubles, Milken has actively sought to improve his public image through philanthropic endeavors.

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