John Koudounis, president and chief executive officer for Calamos Investments told the Concordia Summit taking place in New York that he does not foresee lower interest rates soon.
Koudounis spoke at a panel titled “Navigating Investment Landscapes: Capital and Opportunity” on Monday. The Federal Reserve is set to maintain its benchmark interest rate at a 22-year high on Wednesday.
“I do not foresee lowering interest rates anytime soon. I know some economists were saying that it could happen by the end of the year. But this is not happening,” the Greek-American business executive said.
“We do not know whether interest rates will be lowered in 2024, especially with the Presidential elections taking place.”
Koudounis rejected the nation that the Federal Reserve has lost control over inflation. There is no question that inflation is coming down he stressed.
“But exogenous factors, such as the rise in the price of oil are keeping it from reaching the 2% target level.”
Oil prices climbed above $95 a barrel for the first time in 2023 on Tuesday, as supply cuts by Saudi Arabia and Russia fueled concerns of a shortfall that could harm the global economy.
Brent crude, the international benchmark, rose as high as $95.33 a barrel and appears on course to challenge $100 a barrel this month, with the rally in prices since June now approaching 30%.
Koudounis at Concordia: Need to get used to higher interest rates
“I think people need to get used to living in a higher interest-rate environment rather than zero interest rate environment we had for several years and youngsters never experienced,” Koudounis told James Fontanella-Khan of the Financial Times.
Despite the effect of Covid on the economy, the disruption of supply lines, and the interest rate hikes, “it’s incredible how we are bouncing off this…The resilience of the economy has been great,” Koudounis said.
In addition to being President & CEO of Calamos Investments, a global investment firm, Koudounis is also a member of the board of trustees of the National Hellenic Museum.
He is a founding board member and executive committee member of The Hellenic Initiative, a non-profit, non-governmental organization with the aim of supporting Greece and Cyprus in the aftermath of the financial crisis by helping to foster entrepreneurship in both countries.
He is also a member of Leadership 100 and Chairman of the Metropolis of Chicago Foundation.
Concordia Annual Summit
The 2023 Concordia Annual Summit is taking place in New York City alongside the UN General Assembly.
The Concordia Annual Summit upholds a remarkable legacy of uniting heads of state, policymakers, business executives, NGO leaders, entrepreneurs, and activists for over a decade.
The Summit, which analyzes and provides solutions for current issues, was founded in 2011 by Matthew A. Swift and Nicholas M. Logothetis, a member of the Greek diaspora.
In 2011, the modest launch of the first Concordia Summit in New York City attracted mostly friends and business partners of the founders.
More than a decade later, the Concordia Annual Summit in New York has become one of the most important events that run in parallel to the UN general assembly, and the organization is now facilitating impactful year-round events around the globe.