the global view: Rate cut anticipation builds up amid jobless pessimism in the U.S. 22.08.24

Ira Epstein from Linn & Associates addresses the implications of a potential job loss of 360,000 to 1 million as indicated by several analysts, including those from Goldman City Wells Fargo. Ira highlights that despite such losses, the economy remains robust with an addition of approximately 170,000 jobs monthly. Nevertheless, Ira perceives a downfall in inflation and the effects of a strict interest rate policy as challenges to the economy.
Moreover, Ira provides insight into the potential reaction of the Federal Reserve members towards these developments. With a leaning towards a drop in the interest rate by at least a quarter in September, the market anticipates cuts around 100 basis points by year-end. This decision would heed the economic data demonstrating a weakening economic state.
Finally, Ira attests to international influences on the economy, such as China's recent changes to their home projects regulations, impacting markets such as copper. Elsewhere, Ira foresees a continuation of the US dollar's weakness, enhancing overall equity market performance. He further asserts that despite the flourishing developments, caution is necessary due to the economic cycle's unstable nature.
Join 90,000 investors who use ausbiz for investing ideas and opportunities. Get the full experience live, on-demand and free at ausbiz.com.au/. When you subscribe you can tailor your content to your interests - by company, expert, topic and series.
Subscribe to our newsletter: company.ausbiz...
X: x.com/ausbiztv
Facebook: / ausbiztv
#ausbiz #finance #investing #globalview

[@WishBlessing]

Thanks