Sparta Capital Securities: Fed Rate Cut Expectations Turn More Cautious
Publication Time:2024-08-15 21:56:07
Peter Cardillo, Chief Market Economist at Sparta Capital Securities, has expressed his view, emphasizing the strong performance of key data recently — retail sales — which has alleviated market concerns over an economic downturn. This positive signal has a positive impact on the stock market and is seen as a favorable factor for the market. However, the situation in the bond market is relatively complex, and market sentiment needs further observation. According to Cardillo's analysis, after taking into account the retail sales data, expectations for a rate cut by the Federal Reserve at its upcoming September meeting have shifted from significant adjustments to a more cautious stance. Currently, the market generally expects the Federal Reserve to adopt a more moderate measure, with only a 25 basis point rate cut, while the likelihood of a substantial 50 basis point rate cut has clearly decreased. This reflects increased confidence in corporate profit prospects and also demonstrates a cautious attitude towards the future direction of the Federal Reserve's monetary policy.
Fed
rate cut
Economic Outlook
retail sales
Sparta Capital Securities