There’s No Longer Any Doubt, Fed Cuts Are Coming!

In the Lead-Up to the September FOMC

Date:

Estados Unidos (PX)

Autor: Funds Society, Miami

U.S. macroeconomic data and statements from Fed Chair Jerome Powell at the recent Jackson Hole symposium have made it clear that this Wednesday the Fed will announce an interest rate cut with its FOMC statement.

Experts at the firm say that economic overheating, or a re-acceleration of inflation, is no longer the main risk for the market. Once the Fed starts cutting, “it is likely to continue until it approaches a neutral interest rate,” which they estimate will be around 3%

Reinvestment risk is now the investor’s worst enemy

David Kelly, Chief Global Strategist at J.P. Morgan Asset Management, compared lowering short-term interest rates from a peak to "like moving a piano down the stairs"