August CPI solidifies 25bps cut from Fed: BMO economist
Вставка
- Опубліковано 16 вер 2024
- The latest Consumer Price Index (CPI) reading came in line with economist expectations for August, with prices rising 0.2% month-over-month and 2.5% year-over-year. Core CPI - which excludes food and energy costs - rose by 0.3% month-over-month, slightly above estimates.
This inflation print comes ahead of the Federal Reserve's September FOMC meeting next week, where it is widely anticipated the central bank will begin to cut interest rates.
To talk more about the data and what it tells about the Fed's rate cut plans, BMO Capital Markets senior economist Jennifer Lee and Yardeni Research chief markets strategist Eric Wallerstein sit down with the Morning Brief team.
Both Lee and Wallerstein agreed that a 50-basis-point rate cut was never "in the cards" for the Fed, Wallerstein commented.
"This report, this would be the fifth decent report in a row for the Fed, giving them the comfort and the confidence to cut again or to start cutting," Lee tells Yahoo Finance. "And I think 25 basis points is a good place to start."
Regarding a stock market (^DJI, ^IXIC, ^GSPC) response to rate cuts, "I think if they [the Fed] went 50, equity markets would fall and bond markets (^TYX, ^TNX, ^FVX) would rise. I think it would signal the economy is, heading in the wrong direction. You know, we're behind the curve and then it would... kind of unleash the volatility (^VIX) that we saw with some of the carry trade unwind, as Japanese rates and US rates come closer together," Wallerstein says.
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Get the latest news and data at finance.yahoo.com
- Download the Yahoo Finance app on Apple (apple.co/3Rten0R) or Android (bit.ly/3t8UnXO)
- Follow Yahoo Finance on social:
X: / yahoofinance
Instagram: www.instagram....
TikTok: www.tiktok.com...
Facebook: / yahoofinance
LinkedIn: / yahoo-finance
Woohoo! My credit card rate will drop from 21% to 20.75%
.25 literally does nothing.
@@FlaminHotChips That’s good because nothing needs to be done.
Powell can announce a 100 point cut
and say after
If inflation reignites, we will pause rates
They're not cutting rates. I can't wait to see when they say no.
There’s a zero percent chance the fed doesn’t do at least a 25 basis point cut. Small chance of 50bps but not likely
@@jasondiehl571 you willing to put money on that?
@@Delanoay yeah definitely
I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks or Crypto will be appreciated
As a beginner investor, it’s essential for you to have a mentor to keep you accountable.
Kristine Lynn Weber is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Kristine Lynn Weber, for her expertise and exposure to different areas of the market.
My colleagues had a good laugh at me when I told them I started my journey with $50k capital and how I accumulated over 6 figures within a span of 7 months. They never believed me until I pulled out my P&L.
I know that learning the ins and outs of the market isn't for everyone, that's why personally, Kristine oversees my investments.
Without a doubt! Kristine Lynn Weber is a trader who goes above and beyond. she has an exceptional skill for analyzing market movements and spotting profitable opportunities. Her strategies are meticulously crafted based on thorough research and years of practical experience.
nice! once you hit a big milestone, the next comes easier.. How can i reach her, if you don't mind me asking?
*twenty five bps* finally here, ALL year this has been annoying.
Yes, lets make decisions BASED on Amrika gov. department of statistics data!!! lol!!! The eCONomists ALWAYS get it right!!!
When they tell you everything looks good this is when to be cautious - in tech alone the jobs in the last week have declined significantly - mentioning the September surge it doesn’t exist this year - that alone should be cause for serious concern - a 25 basis point cut in September would be a slow response that will trigger a recession once the jobs data comes out in August
50 basis point is worse. I hope they do not cut or 25 basis point at max
How will the jobs data come out in August if we are now in September??