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.
Robert Kiyosaki, author of Rich Dad Poor Dad, has issued a bold prediction on silver, calling it the “best asymmetric buy” currently available.
Fresh data on Personal Consumption Expenditures (PCE) — the Federal Reserve’s preferred inflation gauge — shows inflation ticked higher in May, potentially delaying the long-awaited Fed rate cut into September or later.
Federal Reserve Chair Jerome Powell is once again under fire, this time facing renewed criticism from Donald Trump over the Fed’s decision to hold interest rates steady in June.
Billionaire investor Ray Dalio has sounded the alarm over America’s soaring national debt, warning of a looming economic crisis if no action is taken.