Fed Will Cut Rates This Year, According to Bloomberg Analyst
15.07.2024 8:30 2 min. read Alexander Stefanov
Bloomberg analyst Mike McGlone anticipates significant developments at the Federal Reserve, foreseeing potential interest rate cuts in response to recent shifts in US equities.
This marks a pivotal moment as the central bank navigates a changing economic landscape characterized by easing inflationary pressures and softening labor market conditions.
McGlone draws comparisons to historical rate hike cycles, highlighting precedents where rate reductions followed extended periods of tightening policy, potentially mirroring the current trajectory.
Yeah, the Fed’s gonna cut rates. From 2004-06, the #FederalReserve hiked 425 bps and the surprise index floor came in December 2006. September 2007 marked the first rate cut. July 2023 was the last of 525 bps of rate hikes that started in 1Q22. Sticky #inflation may delay Fed… pic.twitter.com/sYl6xnD214
— Mike McGlone (@mikemcglone11) July 13, 2024
Federal Reserve Chair Jay Powell and other officials signal readiness to adjust monetary policy, citing improved control over inflation and a cautious approach to sustaining economic growth. Recent economic data supports the case for easing, with indicators pointing towards manageable inflation levels and moderate job market adjustments.
This backdrop sets expectations for the Fed to announce a 25 basis point rate cut in September, with potential for additional measures depending on economic indicators and global financial developments.
Market sentiment reflects growing confidence in the Fed’s ability to steer a balanced course, with traders pricing in anticipated rate cuts to stimulate economic activity and bolster market stability.
The Fed’s strategy aims for a “soft landing,” aiming to curb inflationary pressures without jeopardizing employment gains, aligning with global efforts among central banks to foster sustainable economic recovery in the post-pandemic era.
-
1
U.S. Imposes New Tariffs as Trade Dispute with Canada Escalates
12.03.2025 9:00 1 min. read -
2
Cathie Wood Sees Recession Risks, Predicts Policy Shift
19.03.2025 11:00 1 min. read -
3
Federal Reserve Holds Rates Steady as Economic Uncertainty Mounts
19.03.2025 20:03 1 min. read -
4
Fed Signals Rate Cuts, but Market Uncertainty Persists
24.03.2025 10:00 2 min. read -
5
U.S. Senate’s Approval of Funding Bill Creates Tension Among Democrats
16.03.2025 15:00 2 min. read
Trump Implements Global Tariff Plan, Triggering Bitcoin Price Drop
In a recent live address, U.S. President Donald Trump declared that a new base tariff of 10% would be applied universally to all countries.
Global Economic Pressures Mount as U.S. Trade Policies and Inflation Concerns Persist
Consumer spending in the U.S. showed weaker-than-expected growth in February, increasing only 0.1%, which was on the lower end of economists’ forecasts.
US PCE Inflation Holds Steady at 2.5% in February, Core Index Surpasses Expectations
In February, the U.S. maintained its annual inflation rate at 2.5%, as reflected in the Personal Consumption Expenditures (PCE) Price Index, according to data released by the Bureau of Economic Analysis.
Stagflation Fears Loom, Yet UBS Identifies Key Investment Areas
UBS has issued a stark warning to investors, flagging stagflation as a looming economic threat.
-
1
U.S. Imposes New Tariffs as Trade Dispute with Canada Escalates
12.03.2025 9:00 1 min. read -
2
Cathie Wood Sees Recession Risks, Predicts Policy Shift
19.03.2025 11:00 1 min. read -
3
Federal Reserve Holds Rates Steady as Economic Uncertainty Mounts
19.03.2025 20:03 1 min. read -
4
Fed Signals Rate Cuts, but Market Uncertainty Persists
24.03.2025 10:00 2 min. read -
5
U.S. Senate’s Approval of Funding Bill Creates Tension Among Democrats
16.03.2025 15:00 2 min. read
