91download.com supports a wide range of platforms, including YouTube, Facebook, Twitter, TikTok, Instagram, Dailymotion, Reddit, Bilibili, Douyin, Xiaohongshu and Zhihu, etc. Click the download button below to parse and download the current video
The Federal Reserve's recent two-day policy meeting has left many wondering about the implications of a potential September rate cut. Joining us to decipher the Fed's statement is Mike Musio of FBB Capital Partners. What does the shifting tone from inflation to unemployment signify, and how will this affect consumers and the economy?
The tone of the Fed's statement has subtly shifted from the pervasive concern of inflation to the rising numbers of unemployment. This marks a significant change in the Fed's focus, especially after predominantly concentrating on inflation data over the past two decades. The hint of a September rate cut suggests that the Fed aims to avoid being too tight for too long, indicating a more measured approach to monetary policy.
But what does this mean for the average consumer and the markets? The anticipated 25 basis point cut might not feel like a groundbreaking change, as the effects of Fed policy typically take six to 12 months to fully permeate the economy. However, the message of loosening is significant. Consumers and investors can expect the first tangible effects in the form of lower interest rates on bank rates and short-term instruments like t-bills, which have been paying higher interest rates.
Will this rate cut lead to a soft landing or set the stage for a more aggressive economic downturn? Mike Musio believes that if the trend continues with another potential cut in November, we might witness a soft landing scenario, leading to increased consumer confidence and spending, especially around the holidays. However, the scenario to avoid is one where a significant economic event forces the Fed to lower rates drastically, akin to taking the elevator down rather than a series of stair steps.
In other news, the week's big tech earnings revealed a tale of two companies. Microsoft's cloud computing business disappointed, while AMD's strong earnings sent its stock soaring. The difference lies in scale and expectations. Microsoft is accustomed to beating estimates and raising guidance, whereas AMD, often considered the underdog, exceeded lower expectations.
Boeing also made headlines by naming its new CEO, Kelly Ortberg. The company has faced numerous challenges, and investors will be closely watching how Ortberg addresses these issues, especially regarding safety and cultural aspects within the company.
The Federal Reserve's shift in focus from inflation to unemployment and the potential September rate cut could set the stage for a more stable economic future. As we navigate these changes, it's essential to remain vigilant and adaptable. The road ahead is uncertain, but with careful planning and strategic adjustments, we can hope for a soft landing in the economic landscape.
Share on Twitter Share on Facebook