Fed estimates intensify: 50 basis points seriously on the table
While financial markets eagerly await the decision to be made at the Fed’s September 18 meeting, an important comment came from the CEO of California-based asset management company Destination Wealth Management (DWM). CEO Michael Yoshikami said that the possibility of a 50 basis point cut is still on the table and that the Fed has many logical reasons to make this cut.
While it is almost certain that the US Federal Reserve (Fed) will make an interest rate cut decision at the FOMC meeting on September 17-18, Destination Wealth Management (DWM) CEO Michael Yoshikami made a much-talked-about claim on the subject. According to CNBC, the CEO stated that the Fed is still keeping the 50 basis point cut on the table and said, “I don’t see the possibility of a recession. There will be a soft landing. The Fed can easily make a 50 basis point cut for this reason.”
I wouldn’t be surprised at all if it came by 50 basis points”
Michael Yoshikami, who stated that there were logical and serious reasons for the Fed to make a 50 basis point cut, recently stated that he also did not expect a 50 basis point cut at the first meeting, but his opinion changed with the incoming labor market figures:
“Investors should not worry too much about the declines last week. This was an exception. As a company, we were initially considering 3 25 basis point cuts, but right now, we would not be surprised if a direct 50 basis point cut came. Look at the numbers. Corporate earnings are good and the unemployment rate is among the lowest in history… Therefore, I also see a 50 basis point cut as reasonable, this option is still very much on the table…”
“The biggest indicator of a soft landing is salaries…”
Yoshikami, who also stated that he does not expect a recession and therefore a hard landing, said that although the labor force figures have fallen, they are “not too bad” and that he also expects a soft landing:
