Friday , 22 November 2024
Home Forex Should the Federal Reserve listen to its elders and cut rates now, before September?
Forex

Should the Federal Reserve listen to its elders and cut rates now, before September?

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.

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.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

University of Michigan consumer sentiment final for November 71.8 versus 73.7 estimate

Preliminary 73.0Consumer sentiment 71.8 versus 73.7 estimate. Preliminary 73.0. Prior month 70.5Expectations...

Tech giants stumble: Communication services slump amid mixed market signals

Sector OverviewThe stock market is showcasing a mixed bag of performances today,...

S&P global manufacturing PMI 48.8 versus 48.8 estimate. Services 57.0 versus 55.2 estimate

Prior month manufacturing 48.5. Prior month services 55.0S&P global flash manufacturing index...

US indices are trading marginally higher to start the day

The major US stock indices are marginally higher to start the new...