Ep. 110A – The Fed: To Cut, or Not to Cut?

The Kapital News
The Kapital News
Ep. 110A - The Fed: To Cut, or Not to Cut?

As central bankers gather at their annual retreat in Jackson Hole, Wyoming, the global markets now await the statements from Fed Chairman, Jay Powell. Given a volatile month in global equities and further signs of a global slowdown, this leaves the Fed and other central bankers with a decision – to cut, or not to cut. Global central banks have already begun new easing cycles, but now the focus is on the most powerful of these institutions – namely the Fed and the ECB. Given the recent release of their meeting minutes, it’s highly likely that the ECB will be cutting interest rates next month and perhaps even begin another round of QE or at least signal as much. Meanwhile, the Fed appears to remain conflicted among its members as to their next decision. Fed Presidents from Kansas City and Boston are against cutting interest rates further, citing lower rates could cause more harm than good. Yet, there are still other members who are fine with slashing rates even deeper. US markets were relatively flat today as they await Jay Powell’s speech for further signs as to what the Fed is likely going to do in September. Therefore, tomorrow will see either a strong rally to the upside or a sizeable sell-off. This is not free-market capitalism when the world awaits tweets and statements from Presidents and central bankers. Nevertheless, we must be and remain prepared. Stay diversified, stay vigilant, and stay with The Kapital News. #EndTheFed #WakeUpAmerica #Economy #Investing #Politics #Stocks #Peace

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