KSTR - Could The Fed Cut Interest Rates Twice In 2024?

2024-07-18 06:30:00 ET

Summary

• More data was released indicating greater disinflationary progress in the US - which, in my view, means we will get a Federal Reserve rate cut this quarter.
• I think this will be a rather positive earnings season. S&P 500 companies are forecasted to deliver their highest year-over-year earnings growth since the first quarter of 2022.
• The new UK Labour government announced the launch of a multi-billion pound national wealth fund to support green investment and infrastructure development.

Recent data on US inflation shows that the disinflationary process - while imperfect - is picking up steam. I believe the Federal Reserve will cut before the end of the third quarter, and I see room for more than one rate cut in 2024. But this is just one of a long list of topics on investors’ minds this week.

US disinflation may lead to a third-quarter Fed rate cut

Last week more data was released indicating greater disinflationary progress in the US - which, in my view, means we could get a Federal Reserve (Fed) rate cut sooner....

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