Reported 19 days ago
In a recent discussion, Morgan Stanley's Jim Caron suggested that Federal Reserve Chair Jerome Powell 'strong-armed' the committee into a 50-basis-point interest rate cut, reflecting regret over a prior decision not to cut rates in July. While the committee generally agrees on needing further rate cuts in 2024, opinions diverge regarding the outlook for 2025 and 2026. Caron highlighted the dual risks of a rapid rate cut possibly stoking inflation, while insufficient cuts might lead to a more severe economic downturn.
Source: YAHOO