The post Bloomberg Analyst Predicts Fed Rate Cuts Post US Equity Reversal appeared on BitcoinEthereumNews.com.

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 gold prices. This prediction aligns with recent signals from Federal Reserve officials indicating a significant shift in monetary policy. Fed officials, including Chair Jay Powell, have expressed growing confidence in their control over inflation and readiness to adjust their policy direction. This newfound optimism is supported by better-than-expected economic data showing a continued downward trend in consumer price pressures and a softening labor market. While the Fed has not provided specific details on the timing or extent of potential rate cuts, market expectations generally point to September for the first reduction. Tiffany Wilding, an economist at Pimco, described this as a “done deal” following recent…

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Filed under: News - @ July 15, 2024 5:10 am