RBC: If the U.S. unemployment rate rises to 4.4%, a 50 basis point cut will likely occur
RBC Capital Markets economist Michael Reid stated that if the unemployment rate rises to 4.4%, a 50 basis point cut would likely occur. However, he also said that if the unemployment rate falls and job growth remains at or above 100,000, the Federal Reserve will be cautious about significant cuts. Especially in the run-up to presidential elections, the Fed could be accused of favoring the ruling party by stimulating the economy through interest rate cuts. The futures market expects a first cut of 25 basis points from the Fed this month, with cumulative cuts reaching one percentage point this year and several more 25 basis point cuts expected by 2025.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Meta (META.US) data center's first high-yield bond is oversubscribed more than four times, strong demand drives premium issuance
The first junk bond issuance by the data center division of Meta Platforms attracted demand over four times the transaction size, with its enticing yields drawing in investors.
US stock index adjustments to take effect next Monday: Bloom Energy (BE.US) and Everpure (P.US) to be included in S&P 500, changes also for mid- and small-cap stocks
Bloom Energy, Illumina, and Everpure will be included in the S&P 500 index, while several other companies will be added to the S&P 100, S&P MidCap 400, and S&P SmallCap 600 indices.
Is the Federal Reserve repeating the 2022-style rate hikes? Bank of America warns: Rates may return above 5%, suggests shorting two-year U.S. Treasuries.
Bank of America warns: With Waller at the helm, the Federal Reserve may raise interest rates above 5%, potentially repeating the events of 2022.
Crypto prices
More
