Will the US Cut Interest Rates? Foreign Banks: Unemployment Rate is Key

Reported 6 months ago

On June 7, 2024, market estimates predict that the US inflation needs to drop to 2%, which may take a long time. However, foreign banks point out that recent economic data shows signs of slowdown, with the upcoming May unemployment rate expected at 3.9%. If this rate is met, a rate cut in September is likely to be maintained for this year; if it is lower than expected, the possibility of a rate cut may be reconsidered or delayed. Various economic indicators suggest that inflation is slowly declining, allowing the Federal Reserve to temporarily hold rates steady and delay emergency rate hikes due to inflation pressures.

Source: YAHOO

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