ECB Cuts Rates before Fed: Implications for the Future

Reported 6 months ago

WisdomTree Global CIO Jeremy Schwartz discusses the European Central Bank's first interest rate cut since 2019, moving rates to 3.75% from 4%, and the potential impact on the Federal Reserve's next interest rate decision. As the ECB emphasizes data-dependency and refrains from committing to further cuts, Schwartz highlights the possible volatility in investing in Europe and suggests focusing on cheaper stocks rather than going long on the euro. Schwartz notes that with inflation decreasing, the Fed may not need to be as restrictive, but the key lies in the data they monitor and their confidence levels.

Source: YAHOO

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