Reported 12 months ago
The June ISM manufacturing data falling below expectations has led to speculation about a potential Federal Reserve rate cut. BCA Research's Irene Tunkel suggests that the slowing economic growth creates conditions for an interest rate cut. Tunkel anticipates the first cut by year-end due to political uncertainty but emphasizes whether the Fed's action will be 'reactive or proactive.' She notes that market perception of the rate trajectory is crucial. Tunkel highlights that it may not matter when the Fed exactly cuts rates, but what they communicate to the market, with implications for equities and the market rally's sustainability.
Source: YAHOO