Economist: 'Fed cuts interest rates by 0.5% this month will cause market panic'
The Federal Reserve's sharp interest rate cut this month could spook financial markets and send the wrong signal about the risk of an impending recession, according to an economist. The comments come as US central bank policymakers are expected to begin easing policy at their meeting on September 17-18. Investors will be closely watching economic data for signs of the Fed’s potential rate cuts.
Ton surges as Telegram CEO speaks out for first time since arrest.
Pavel Durov criticized French authorities for applying outdated laws when prosecuting him and denied the allegations against Telegram. Pavel Durov wrote in a lengthy Telegram post on September 5 that it was “surprising” that he was held responsible for content posted by others on the platform. “Using pre-smartphone laws to charge a CEO with illegal actions committed by third parties on their apps is the wrong approach,” he wrote.
Breaking News: Bank of Canada Cuts Interest Rate to 4.25%
As expected by market participants, the Bank of Canada (BoC) delivered its third consecutive 25 basis point rate cut at its monetary policy meeting on Wednesday, reducing its policy rate from 4.50% to 4.25%.
Nvidia Stock Is Being Shunned by a Group of Ultra-Rich People: Why?
Nvidia shares fell 9% on September 3 alone as the sell-off gripped the US stock market.
Michael Sonnenfeldt, chairman of Tiger 21, said: “While Nvidia is the leader in AI right now, no growth lasts forever and competitors will catch up with Nvidia, leading to a market correction.”
More than half of Tiger 21 members, the ultra-rich club, do not hold any Nvidia shares. They also said they have no intention of investing in the company in the future. With 43% of members holding shares of the chip giant, most do not intend to buy more because they think the price is too high.
Fed official wants more data to “validate” rate cuts
The official reiterated that his expected cut timeline has been pushed up after inflation fell faster than expected and unemployment rose faster. But he remained cautious. “I don’t want to get into a situation where we have to cut and then raise rates,” Raphael Bostic said Wednesday at an event hosted by the Stanford Georgia Club in Atlanta. “So if I had to err on the side of one, it would be to wait a little longer to make sure that we don’t have to do that.”
Earlier in an interview at Jackson Hole, Atlanta Fed President Raphael Bostic began to shift his stance on rate cuts, having spent most of the past year advocating for a single 0.25% rate cut, which should come by the end of 2024. In a speech on Wednesday, Raphael Bostic said upcoming reports on inflation and jobs will be “important signals” for Fed policymakers to be more certain that the trends they are watching are continuing.
Fed Chair Jerome Powell May 'Regret' Recent Speech
At last week's Jackson Hole event, Federal Reserve Chairman Jerome Powell emphasized the importance of recent labor market data, saying the central bank was about to change monetary policy as it saw signs of a weaker labor market.
However, economist Adam Posen, president of the Peterson Institute for International Economics (PIIE), said Powell's remarks were not broad enough and did not address other economic factors. This could confuse the overall economic "picture."
Posen pointed out that Powell did not talk about how the economy got to where it is or how interest rates might change the course of the economy. The economist said that the speech's focus on such a short time frame was influenced by political factors, with the upcoming presidential election.
Currently, according to the CME FedWatch tool, investors are predicting that the Fed will cut interest rates by 25 basis points at its policy meeting on September 17-18, and the possibility of a 50 basis point cut is lower.
PMI announcement tonight 9pm - Currently, the manufacturing industry in the US has recovered compared to the beginning of the year. The Dow Jones industrial index increased by 0.55% today. Along with a series of signals from European markets. Short-term prediction BTC increased slightly near the 60k threshold. Going around for a while about 1-2 more weeks. #pmi
In the short term, the market will probably run slowly, causing confusion. You should not short at this time. Prioritize buying Spot in this period as much as possible.
9pm tomorrow PMI manufacturing index is announced, likely to be higher than last month because manufacturers are busy for the year-end season, tomorrow night BTC may increase slightly #btc #pmi