Mumbai, 05 Aug (Commoditiescontrol): In light of the unexpected uptick in U.S. unemployment, the Federal Reserve faces growing pressure to implement an immediate interest rate cut, rather than waiting until its scheduled September meeting. Nigel Green, CEO of the deVere Group, has issued a critical warning, advocating for a swift 25-basis point reduction to mitigate the rising risks. He cautions that any delay could expose the U.S. economy to "legitimate and far-reaching risks of a hard landing," potentially triggering a severe recession.
The surprise increase in unemployment has already sent ripples through financial markets, driving down U.S. stock futures, weakening the dollar, and lowering Treasury yields. While Green recommends a modest 25-basis point cut, some analysts argue that an emergency reduction of up to 75 basis points may be necessary to stave off a deeper economic downturn.
Reflecting these concerns, traders on the decentralized prediction platform Polymarket now estimate a 55% probability that the Fed will need to embark on aggressive rate cuts. This shift in market expectations underscores the urgency felt by investors and analysts alike, who fear the consequences of inaction by the Fed.
(By Commoditiescontrol Bureau; +91-9820130172)
0 Comments 
Post Comment 
