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…
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