Posted on 08/19/2024 12:04:00 PM PDT by Miami Rebel
Bank officials signal readiness to start interest rate-cutting cycle to ease pressure on households and businesses
After a rollercoaster month in financial markets amid fears of a potential US recession, a majority of economists polled by Reuters said they did not expect a downturn to materialise, and that the Fed would cut borrowing costs by 0.25 percentage points at each of its remaining meetings in 2024.
It comes after the heads of three regional Federal Reserve banks signalled growing readiness for the start of a rate-cutting cycle to help ease pressure on households and businesses from high borrowing costs.
The president of the Minneapolis Federal Reserve, Neel Kashkari, said it was appropriate to discuss potentially cutting interest rates from as early as September because of a weakening jobs market.
“The balance of risks has shifted, so the debate about potentially cutting rates in September is an appropriate one to have,” he said in an interview with the Wall Street Journal on Monday.
His comments followed similar remarks by the head of the St Louis Fed, Alberto Musalem, and the Atlanta Fed president, Raphael Bostic.
(Excerpt) Read more at theguardian.com ...
Saturday, Goldman Sachs cut its probability forecast for a U.S. recession to 20% from 25%, shortly after raising it from 15%.
It'll be interesting to see if the Fed cuts by a half point or a quarter point next month. I don't think either would have much impact on the stock market given how widely a cut has been broadcast by several Fed governors in interviews.
Of course the election has nothing to do with it..........
Long ago and far away, the Fed avoided election cycle monetary measures.
Inflation is not tamed. Money grubbers have been howling for rate cuts all year and they should STFU.
Still trying to push through the rate cuts. Very bad idea at this time.
Perhaps they are cutting rates in order to bring inflation back. They may figure Trump is going to win. Then they can say that, while Biden had “tamed” inflation, it returned with a vengeance in Trump’s second term.
“Inflation is not tamed.”
TRUE, but the FED is a political animal largely focused on supporting the ‘Rats.
Good for Gold and Silver. Back up the truck.
I sold half my GLD this morning. I’m still long the 20-year Treasury ETF (TLT) but will sell if it sees $100.
September I am shocked/s
You can’t tame inflation while still printing trillions of vapor dollars.
Too late to influence the election. With Kalama’s proposed economic policies, no rational company is going to be borrowing.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.