Bloomberg Analyst Predicts Fed Rate Cuts Post US Equity Reversal 🚨
Bloomberg analyst Mike McGlone has projected that the Federal Reserve will soon cut interest rates, following a reversal in US equities. This forecast comes amid growing signals from Fed officials about a potential shift in monetary policy, marking a pivotal moment in the post-pandemic economic landscape.
As inflation shows signs of cooling and the labor market begins to soften, the central bank appears poised to transition from its aggressive rate-hiking stance to a more accommodative approach.
Fed Rate Cuts Historical Context & Current Economic Indicators
Bloomberg analyst Mike McGlone has forecasted that the Federal Reserve will cut interest rates following a reversal in US equities. McGlone drew parallels between the current economic situation and previous rate hike cycles, noting, “From 2004-06, the Federal Reserve hiked 425 bps and the surprise index floor came in December 2006. September 2007 marked the first rate cut.”
Comparing this to the present, McGlone pointed out that July 2023 saw the last of 525 basis points of rate hikes that began in the first quarter of 2022. However, he cautioned that persistent inflation might delay the Fed’s easing until elevated equities undergo some reversion, which could potentially provide support for
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