Reported 6 months ago
Bank of America's Chief Investment Strategist Michael Hartnett warns that a Federal Reserve interest rate cut could indicate trouble for the economy, with the chance of a hard landing increasing if the market becomes more confident of lower rates in the second half of 2024. Traders have pushed back expectations of a Fed cut but now see the first one possibly coming in September. If economically sensitive stocks fail to rally amid increased rate cut bets, bonds might outperform as concerns over a significant economic slowdown grow. Job data expected on Friday may offer insights into US economic health, with any indication of a hot job market possibly delaying a rate cut further.
Source: YAHOO