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  • Markets are counting on the Fed to head off recession with sizeable interest rate cuts

    From cnbc.com

    In the market’s eyes, the Federal Reserve finds itself either poised to head off a recession or doomed to repeat the mistakes of its recent past — when it was too late seeing a coming storm. How Chair Jerome Powell and his cohorts at the central bank react likely will go a long way in determining how investors negotiate such a turbulent climate. Wall Street has been on a wild ride the past several days, with a relief rally Tuesday ameliorating some of the damage since recession fears intensified last week. “In sum, no recession today, but one is increasingly inevitable by year-end if the Fed fails to act,” ... (full story)

No rate movement. The market is way ahead of itself, so a correction is needed to bring it back down to earth. Plus, a pending election in a few months, they ain't gonna do anything until the first quarter of next year. Now, it's BOJ's time, so buckle up. I said this in the beginning of the year, now it's playing out. When everyone was about to crash, at the world economic summit (the one before the recent one) everyone pretty much forced the BOJ to stay put, so they can get their countries in order. Now, it's BOJ turn, so if any there are any rate movement at all, it will be more coming from the BOJ and Swiss (CHF).
ad nauseum now will be the constant fretting over "will it be 25 or 50 bps?" ...and every econ data point will invite the bots to go wild and crash or melt up the market. Fine with me. Let it reach a fever pitch. Volatility is my bff. My hunch is risk markets will dump if the Fed does not cough up 50 at the Sep FOMC.
"If The Fool persists in his Folly he will become wise." - William Blake
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  • Posted: Aug 6, 2024 4:59pm
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 2  /  Views: 3,456

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