As the Federal Reserve maintains its policy interest rate at a 23-year high of 5.25%-5.50%, anticipation builds for a potential rate cut in September.
Fed Chairman Jerome Powell hinted at a possible reduction if inflation continues to drop.
The market currently sees a 51.5% chance of a 25 basis point cut and a 48.5% chance of a 50 basis point cut.
Bank of America CEO Brian Moynihan warned that delaying rate cuts could harm US consumers.
In a CBS News interview, he emphasized the need for timely reductions to avoid disappointing consumers, which could be hard to reverse.
Regarding former President Donald Trump’s suggestion that presidents should influence Fed decisions, Moynihan stated that while advice is welcome, the final decision should remain with the Fed chair.
He noted that economies with independent central banks perform better.
The U.S. economy may be closer to a downturn than many realize, according to Jay Bryson, chief economist at Wells Fargo.
Morgan Stanley has issued a cautionary outlook on the U.S. dollar, predicting a major decline over the coming year as Federal Reserve rate cuts take hold.
Legendary investor Ray Dalio has issued a stark warning about the trajectory of U.S. government finances, suggesting the country is drifting toward a series of severe economic shocks unless its debt spiral is urgently addressed.
Steve Eisman, the famed investor known for forecasting the 2008 housing collapse, is sounding the alarm—not on overvalued tech stocks or interest rates, but on the escalating risk of global trade disputes.