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Analyst: 50Bp rate cut looks to be off the table as market anxiety wanes

Analyst: 50Bp rate cut looks to be off the table as market anxiety wanes

Bitget2024/08/15 13:22

Steve Wyett, chief investment strategist at Bok Financial, said, The overall message I'm getting from the U.S. data is that the market's anxiety a week and a half ago about the weaker-than-expected jobs report, the fear that the Fed was lagging and that the economy was sliding into a recession, and consequently the 50-basis-point cut expected in September's interest rate cuts, is now waning. The economy is now not expected to fall into recession anytime soon. This will take the 50 basis point rate cut in September off the table. I still think 25 bps is reasonable as inflation continues to ease and we're getting some nice reports with PPI and CPI contributing. We have very important jobs data before the next Fed meeting, but that should lessen the sense that the economy is about to fall into recession. The early calls for the Fed to take emergency action during that period of market volatility now seem even more outrageous than we thought at the time.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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