Home » Economy » U.S. Unemployment Rises and Major Banks Predict Significant Interest Rate Cuts

U.S. Unemployment Rises and Major Banks Predict Significant Interest Rate Cuts

14.08.2024 9:30 1 min. read Alexander Stefanov
SHARE: SHARES
U.S. Unemployment Rises and Major Banks Predict Significant Interest Rate Cuts

The U.S. economy is showing signs of strain as unemployment climbed from 4.1% to 4.3% in July, increasing the number of jobless Americans to around 7.2 million.

This labor market decline coincides with a massive $6.4 trillion drop in global stock markets over a three-week period.

Wells Fargo analysts are sounding alarms, urging the Federal Open Market Committee (FOMC) to shift to a ‘neutral’ policy stance to avoid worsening the economic downturn. In response, major banks are predicting significant interest rate cuts.

Bank of America anticipates a rate cut in September, while Wells Fargo and JPMorgan Chase foresee a 50 basis point reduction in both September and November. Citi expects a cumulative 100 basis point cut by November, aiming for a range of 3% to 3.25% by mid-2025.

These anticipated rate adjustments reflect growing concerns about the economic stability in the U.S. and globally, suggesting that investors should prepare for potential financial instability in the near future.

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.

Telegram

SHARE: SHARES
More Economy News
No Comments yet!

Your Email address will not be published.