dropglobalnews

"Federal Reserve officials held off on cutting interest rates this week because they wanted to see slightly more data to feel confident that inflation is truly coming under control. While that approach is cautious when it comes to price increases, Friday’s employment report underscored that it might be a risky one when it comes to the job market.

Unemployment rose to 4.3 percent in July, up from 4.1 percent previously, as hiring slowed sharply. The labor market cracks have given sudden urgency to concerns that the Fed has waited too long to begin cutting rates — and that it might be falling behind, allowing the job market to slow in a way that will be hard to stall or reverse.

“They are absolutely behind the curve, and they need to catch up,” said Julia Coronado, founder of MacroPolicy Perspectives."

It seems likes aggressive steps may be ahead. I would not be surprised by a 0.5% cut at the next Fed meeting in September.

"Federal Reserve officials held off on cutting interest rates this week because they wanted to see slightly more data to feel confident that inflation is truly coming under control. While that approach is cautious when it comes to price increases, Friday’s employment report underscored that it might be a risky one when it comes to the job market.

Unemployment rose to 4.3 percent in July, up from 4.1 percent previously, as hiring slowed sharply. The labor market cracks have given sudden urgency to concerns that the Fed has waited too long to begin cutting rates — and that it might be falling behind, allowing the job market to slow in a way that will be hard to stall or reverse.

“They are absolutely behind the curve, and they need to catch up,” said Julia Coronado, founder of MacroPolicy Perspectives."

It seems likes aggressive steps may be ahead. I would not be surprised by a 0.5% cut at the next Fed meeting in September.

https://www.nytimes.com/2024/08/02/business/economy/jobs-report-fed.html

Writer, podcaster, and commentator on foreign affairs and politics. Runs /dropglobalnews

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