US Fed Rate Cut of 50 Bps Clouded By Retail Sales and Jobless Claims; ECB Cuts Rate
The post US Fed Rate Cut of 50 Bps Clouded By Retail Sales and Jobless Claims; ECB Cuts Rate appeared on BitcoinEthereumNews.com.
September brought stronger-than-expected growth in retail sales that clouded possible US Fed rate cut. This, coupled with an unexpected drop in new jobless claims gives a potential, short-lived boost to the economy and crypto market. Meanwhile, the ECB resorted to a third rate cut this year influenced by the weak growth outlook and the inflation scare. Mixed Economic Signals Keep US Fed Rate Cut on the Table, ECB Follows Suit The outlook for the next US Fed rate decision was clouded by stronger-than-expected retail sales and a decline in jobless claims. This signaled resilient economic activity despite mixed data. Meanwhile, the European Central Bank’s recent rate cut to 3.25%, its third of the year. These factors contribute to a complex backdrop for the crypto market. Lower rate typically support risk assets like Bitcoin. Yet, persistent uncertainty leads to temporary downward pressure on digital asset prices. The S&P 500 managed to inch higher at the opening bell following that news. The market was acting optimistic, but there were caution signals as the trends were not likely to last longer. Stronger-than-expected retail sales data raised some questions. most of them were regarding the Fed possibly holding off on easing rates at December meeting. Those concerns were tempered as a weak industrial production report clouded the overall economic outlook. Mixed signals on the economy’s momentum haven’t stopped markets from betting on a near-term rate cut. US Treasury yields climbed Thursday after good economic signals emanated from fresh data. The 10-year Treasury yield was up over 5 basis points to 4.071%, while the 2-year yield added five basis points to 3.993%. However, claims for jobless benefits fell to 241,000 in a week. This is well below the forecast that continued to show labor markets’ resilience. The data underpinned an underlying economic vitality that contradicts…
Filed under: News - @ October 17, 2024 11:28 pm