Bloomberg Analyst Forecasts Fed Rate Cuts Amid US Equities Reversal
The post Bloomberg Analyst Forecasts Fed Rate Cuts Amid US Equities Reversal appeared on BitcoinEthereumNews.com. The Federal Reserve may be approaching a policy shift as analysts predict an easing of interest rates. This potential change comes amid cooling inflation and a weakening labor market in the U.S. Bloomberg analyst Mike McGlone suggests this could signal a pivotal moment for the post-pandemic economy. Analysts Predict Potential Fed Rate Cuts Amid Shifting Economic Indicators in the U.S. Fed Rate Cuts on the Horizon? Understanding McGlone’s Forecast According to Bloomberg analyst Mike McGlone, the Federal Reserve might be on the verge of cutting interest rates, following a reversal in US equities. McGlone draws parallels between the current economic situation and previous rate adjustment cycles. He notes that after significant hiking of basis points from 2004 to 2006, a rate cut followed in September 2007. McGlone sees a similar pattern potentially unfolding, especially with inflation showing signs of easing and the labor market softening. Signs of Cooling Inflation and Market Expectations Recent economic data suggest that inflation is slowing down, which Fed officials, including Chair Jay Powell, have acknowledged. The cooling inflation, combined with a deteriorating labor market, has led market watchers to speculate on possible rate cuts as early as September. Economist Tiffany Wilding from Pimco concurs, noting that these developments make a rate reduction seem almost inevitable. Risk Management: Balancing Inflation and Employment The Federal Reserve faces the complex task of controlling inflation without triggering significant job losses. Powell emphasized to lawmakers the necessity of managing these “two-sided risks,” which entails being vigilant about how high interest rates could impact employment. The Fed’s strategy aims to achieve what is termed a “soft landing”—reducing inflation while avoiding a spike in unemployment rates. Global Perspectives and Economic Responses On a global scale, the U.S. is not alone in potentially shifting its monetary policy stance. At the Australian Conference of…
The post Bloomberg Analyst Forecasts Fed Rate Cuts Amid US Equities Reversal appeared on BitcoinEthereumNews.com.
The Federal Reserve may be approaching a policy shift as analysts predict an easing of interest rates. This potential change comes amid cooling inflation and a weakening labor market in the U.S. Bloomberg analyst Mike McGlone suggests this could signal a pivotal moment for the post-pandemic economy. Analysts Predict Potential Fed Rate Cuts Amid Shifting Economic Indicators in the U.S. Fed Rate Cuts on the Horizon? Understanding McGlone’s Forecast According to Bloomberg analyst Mike McGlone, the Federal Reserve might be on the verge of cutting interest rates, following a reversal in US equities. McGlone draws parallels between the current economic situation and previous rate adjustment cycles. He notes that after significant hiking of basis points from 2004 to 2006, a rate cut followed in September 2007. McGlone sees a similar pattern potentially unfolding, especially with inflation showing signs of easing and the labor market softening. Signs of Cooling Inflation and Market Expectations Recent economic data suggest that inflation is slowing down, which Fed officials, including Chair Jay Powell, have acknowledged. The cooling inflation, combined with a deteriorating labor market, has led market watchers to speculate on possible rate cuts as early as September. Economist Tiffany Wilding from Pimco concurs, noting that these developments make a rate reduction seem almost inevitable. Risk Management: Balancing Inflation and Employment The Federal Reserve faces the complex task of controlling inflation without triggering significant job losses. Powell emphasized to lawmakers the necessity of managing these “two-sided risks,” which entails being vigilant about how high interest rates could impact employment. The Fed’s strategy aims to achieve what is termed a “soft landing”—reducing inflation while avoiding a spike in unemployment rates. Global Perspectives and Economic Responses On a global scale, the U.S. is not alone in potentially shifting its monetary policy stance. At the Australian Conference of…
What's Your Reaction?