Fed Rate Cut Looms Will Markets Echo 2007's Short-Term Pain?

  • Analyst Brett Eth links the Fed’s anticipated rate cut to 2007.

  • Fed Chair Powell hints at a rate reduction amid a cooling U.S. job market and nearing inflation target.

  • Global markets respond mixedly to potential rate cuts.

Market analyst Brett Eth has drawn parallels between the Federal Reserve’s anticipated September 18, 2024, rate cut and a similar move in 2007. Brett noted that while Federal Reserve rate cuts often lead to long-term market gains, they can trigger short-term declines.

2007
– Fed rates were 5.25% at the timing of the first-rate cut
– Between Sept 18, 2007, and April 30, 2008, the Fed cut rates 7 times taking the rate down to 2%.

2024
– Fed rates are 5.25-5.5%
– Rate cuts should begin on September 18th. Current probabilities show 9 potential… https://t.co/nxzCrGmd6d pic.twitter.com/8P0YmLNnbT

— Brett (@brett_eth) August 26, 2024

Fed chair Jerome Powell recently hinted at a rate cut in September, expressing confidence that inflation is approaching the Fed’s 2% target. This comes as the U.S. job market cools down, hinting at a possible economic slowdown. Anticipated inflation data, due on Friday, is predicted to be mild, further strengthenin…

The post Fed Rate Cut Looms: Will Markets Echo 2007’s Short-Term Pain? appeared first on Coin Edition.