The Importance of 'Weak' Inflation and Labor Data for the Fed

Reported 6 months ago

As economic indicators point to a softening labor market, investors are hopeful for a potential rate cut. However, Principal Asset Management Chief Global Strategist Seema Shah believes a near-term rate cut is unlikely without clear evidence of economic readiness, especially during an election year. Shah emphasizes the necessity of sustained weak data on inflation and labor markets for the Fed to consider rate cuts in September. This cautious approach is crucial, given the significance of clear evidence before taking action on monetary policy, particularly in an election year.

Source: YAHOO

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