Economic Experts Predict the Fed Might Significantly Cut Rates in September to Counter Weak Economic Data
Publication Time:2024-08-02 14:42:07
Eric Diton, President and Director of Wealth Alliance, recently stated that he believes the Federal Reserve should cut interest rates by 25 basis points this week to address the current economic conditions, but this decision did not materialize. Following this, an increase in initial jobless claims and the continued poor performance of the ISM Manufacturing PMI index for four consecutive months have further increased market concerns. Diton emphasized that Federal Reserve Chair Jerome Powell stresses decisions based on data, making Friday's release of non-farm payroll data crucial. If the data shows weak economic performance, Diton predicts that the Fed may take more aggressive measures in September, cutting rates by 50 basis points. Additionally, Diton mentioned the significant pressure posed by a debt of up to $35 trillion on the US fiscal system, with the government's payment of interest on this debt accounting for about 17% of federal spending, effectively eroding funds available for other decisions.
Federal Reserve
Interest Rate Cut
Economic Growth
economic data
non-farm payroll data
debt burden