Skip to Content Facebook Feature Image

U.S. Fed likely to initiate first rate cut in four years

China

Video Player is loading.
Current Time 0:00
Duration -:-
Loaded: 0%
Stream Type LIVE
Remaining Time 0:00
Â
1x
    • Chapters
    • descriptions off, selected
    • captions off, selected
      China

      China

      U.S. Fed likely to initiate first rate cut in four years

      2024-09-16 17:23 Last Updated At:19:07

      The Federal Reserve is set to convene for a new round of interest rate meetings from Tuesday to Wednesday, and financial markets are abuzz with renewed expectations of a significant rate cut.

      Market consensus currently points towards the Federal Reserve embarking on its first rate cut since March 2020. The ongoing debate revolves around the magnitude of this initial cut, whether it will be 25 basis points or 50 basis points. Major U.S. banks, including Bank of America and Goldman Sachs, stand in the 25-basis-point camp, while JPMorgan Chase anticipates a 50-basis-point cut.

      Analysts advocating for a 25-point cut argue that current inflation rates remain above the Fed's 2 percent target and the month-on-month core inflation is higher than expected, signaling a need for caution.

      On the other hand, those supporting a 50-point cut are primarily concerned about the labor market. Many investors and economists fear that the Fed's delayed action has put the U.S. labor market and economic growth at risk, leading to market volatility. To avert an economic downturn, there are calls for the Fed to act swiftly.

      American economist Claudia Rae Sahm, currently serving as chief economist for New Century Advisors, is a firm supporter of a 50-point cut, saying there is already a well-established cooling trend in labor market.

      After the September meeting, the next interest rate meeting is scheduled for November, with approximately seven weeks in between. Analysts suggest that negative developments may occur during this period, compelling the Fed to assess trends and preempt potential risks.

      "Trend has been a little bit negative, whether you look at jobs or other mechanisms or parts of the economy reporting over the last several months. So it would be more of a method of trying to get in front of things," David Volpe, deputy chief investment officer Emerald Advisers warned.

      The growing anticipation of a substantial rate cut by the Federal Reserve has also propelled international gold prices upward. Currently, December gold futures delivery has breached the 2,600 U.S. dollars per ounce mark. Goldman Sachs predicts that the upward trajectory of gold prices may extend into early 2025.

      U.S. Fed likely to initiate first rate cut in four years

      U.S. Fed likely to initiate first rate cut in four years

      Next Article

      Representatives to UN hope for smooth implementation of Gaza ceasefire agreement

      2025-01-21 13:27 Last Updated At:13:37

      Representatives of many countries to the United States have expressed the hope for a full implementation of the Israel-Hamas ceasefire agreement.

      The agreement, brokered by Qatar, Egypt and the United States, came into effect in Gaza on Sunday. The three-phase agreement is aimed at a "permanent ceasefire between the parties", according to the mediators.

      At a UN Security Council meeting held on Monday, Secretary-General Antonio Guterres praised the conclusion of the agreement between Palestine and Israel of the ceasefire and the exchange of detained persons, but stressed that efforts are still needed to ensure a comprehensive ceasefire, release all detained persons and increase humanitarian assistance.

      Varsen Aghabekian, state minister for foreign affairs and expatriates of Palestine, said in her speech that the Palestinian side hopes the ceasefire agreement could be implemented and that the Palestinian government is ready to resume management in Gaza.

      "We confirm that the Palestinian Government is ready to work with friendly brotherly countries and organizations to assume responsibility for the administration of the Gaza Strip and the West Bank, including restoring basic health, education, water and electricity services, ensuring the return of displaced persons to their homes, and preparing for the reconstruction phase," she said.

      Right before the meeting, several representatives to the United Nations spoke to China Media Group (CMG) and what they said the most was hoping that the implementation of the agreement could hold all the way through.

      "It would be good if it holds," said Vasily Alekseyevich Nebenzya, permanent representative of Russia to the United Nations.

      "We welcome it so far. We hope it holds and we hope that the next steps will be taken," said Munir Akram, a Pakistani diplomat currently serving for the second time as the permanent representative of Pakistan to the UN.

      "We had supported the deal some time ago," said Carolyn Rodrigues-Birkett, permanent representative of Guyana to the UN.

      Representatives to UN hope for smooth implementation of Gaza ceasefire agreement

      Representatives to UN hope for smooth implementation of Gaza ceasefire agreement

      Recommended Articles
      Hot · Posts