VGSH - The Fed Doesn't Need To Cut Rates But Probably Will Anyway
2024-06-13 08:40:00 ET
Summary
- As it stands today, maybe, just maybe, we are seeing a confluence of economic data that may allow the Fed to undertake its one or two rate cuts it so badly wants.
- Outside of a notable downturn in manufacturing and industry (which is now entering a cyclical upturn), other key drivers of economic growth in the form of consumption and employment continue to hold together.
- When we turn our attention to the jobs market, this is one area of the Fed’s mandate where rate cuts are far easier to justify, particularly as it relates to wages.
Just how brave are you, Jerome Powell?
The data-driven approach to the Federal Reserve’s monetary policy decision making process has simply not afforded Powell & Co. any scope to ease monetary policy since they ceased hiking rates in July 2023....
The Fed Doesn't Need To Cut Rates, But Probably Will Anyway