Disappointing economic data recently generated worries that the Fed missed an opportunity at its meeting last week to, if not cut rates outright, send a clearer signal that easing is on the way.
In the past, the Fed has implemented just nine such cuts, and all have come amid extreme duress, according to Bank of America.
Lacking a catalyst for an intermeeting cut, the Fed is nonetheless expected to cut rates almost as swiftly as it hiked from March 2022-July 2023.
Why wait?”LaVorgna, though, isn’t convinced the Fed is in a life-or-death battle against recession.
Still, any quakes in the data, such as Friday’s downside surprise to the nonfarm payrolls numbers, could ignite recession talk quickly.
Persons:
Jerome Powell, ” Steven Blitz, ”, Andrew Hollenhorst, ‘, ’ ”, Michael Gapen, Powell, Joseph LaVorgna, “, “ They’ll, isn’t, Goldman Sachs, David Rosenberg
Organizations:
Federal Reserve, TS Lombard, Fed, Citigroup, Bank of America, Nikko Securities, Rosenberg Research
Locations:
Jackson Hole , Wyoming, Nikko