Last week Jeremy Seigel was lambasted for screaming for a 75bp Federal Reserve emergency rate cut.
As you’ll see from that linked post, he did pull his head in. I’m not sure what the point of screaming for such a panic move was. unless it was the publicity.
Moving on. Cooler heads have nevertheless argued for rate cuts before the September meeting.
And, Alan Blinder also. Blinder is a professor of economics and public affairs at Princeton and served as vice chairman of the Federal Reserve from 1994-96:
- the American jobs machine has slowed
- While the stars look to be aligning for a September rate cut, why wait?
Blinder called for a July rate cut in this Wall Street Journal (gated) piece.
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I think the chance of a cut prior to September is close to zero. But … Federal Reserve Chair Powell speaks at the Jackson Hole Aug 22-24 conference if he wants to surprise us.
This article was written by Eamonn Sheridan at www.forexlive.com.
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