Dudley: An aggressive 50-basis-point reduction in interest rates makes sense - take the Fed’s boot off the economy’s neck
Fed is poised to provide more relief for American businesses and households over the coming months.
And that combination should keep in motion a repricing of trillions of dollars in global assets that’s already underway.
“This is a big plus for Americans and the entire global economy,” said Mark Zandi, chief economist at Moody’s Analytics.
“It goes a long way to take the Fed’s boot off the economy’s neck and allow it to move forward.
It’s already helping, with stocks prices higher than they would be otherwise.”
Bloomberg 16 September 2024
US Financial Conditions - Stramar Fed åt?
september 12, 2024
https://englundmacro.blogspot.com/2024/09/us-financial-conditions-stramar-fed-at.html
One could even argue that the downside risks to employment outweigh the upside risks to inflation. When the labor market deteriorates beyond a certain point, the process tends to be self-reinforcing.
Markets are expecting a total reduction of at least 100 basis points by the end of 2024.
I expect the Fed will do 50.
Bill Dudley Bloomberg 16 september 2024
Bill Dudley: I Changed My Mind: The Fed Needs to Cut Rates Now
https://englundmacro.blogspot.com/2024/07/bill-dudley-i-changed-my-mind-fed-needs.html
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