{"id":110910,"date":"2024-10-06T03:30:14","date_gmt":"2024-10-05T20:30:14","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=110910"},"modified":"2024-10-06T03:30:14","modified_gmt":"2024-10-05T20:30:14","slug":"fed-rate-cuts-wall-street-is-starting-to-have-buyers-remorse","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=110910","title":{"rendered":"Fed rate cuts: Wall Street is starting to have buyer&#8217;s remorse"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<p>Wall Street celebrated the Federal Reserve\u2019s half-point rate cut last month by sending stocks to fresh record highs, but the <a href=\"https:\/\/fortune.com\/2024\/10\/04\/jobs-report-unemployment-rate-fed-rate-cut-outlook-25-basis-points\/\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/10\/04\/jobs-report-unemployment-rate-fed-rate-cut-outlook-25-basis-points\/\" data-type=\"link\" data-id=\"https:\/\/fortune.com\/2024\/10\/04\/jobs-report-unemployment-rate-fed-rate-cut-outlook-25-basis-points\/\" rel=\"noopener\">blockbuster jobs report<\/a> on Friday has caused doubts to creep in.<\/p>\n<div>\n<p>Analysts at <a href=\"https:\/\/fortune.com\/company\/bank-of-america-corp\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/company\/bank-of-america-corp\/\" rel=\"noopener\">Bank of America<\/a> and JPMorgan, which was one of the few banks that correctly predicted the half-point cut last month, have lowered their expectations for November\u2019s policy meeting, and now see a quarter-point cut instead of another 50 basis points.<\/p>\n<p>But others on Wall Street have warned that the situation calls for even more caution from the central bank as further easing could reaccelerate a still-robust economy, threatening to push inflation up again.<\/p>\n<p>For instance, veteran market prognosticator <a href=\"https:\/\/fortune.com\/2024\/10\/04\/ed-yardeni-federal-reserve-interest-rates\/\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/10\/04\/ed-yardeni-federal-reserve-interest-rates\/\" data-type=\"link\" data-id=\"https:\/\/fortune.com\/2024\/10\/04\/ed-yardeni-federal-reserve-interest-rates\/\" rel=\"noopener\">Ed Yardeni told Bloomberg<\/a> Friday that the earlier half-point cut was unnecessary and no more cuts are needed, adding that \u201cI assume several Fed officials regret doing so much.\u201d<\/p>\n<p>Ian Lyngen, the head of U.S. rates strategy at BMO Capital Markets, said while he still expects a quarter-point cut next month, he warned that if the next jobs report and inflation data come in too hot, then the Fed will likely hold off on more easing.<\/p>\n<p>\u201cIf anything, the employment update suggests that the Fed might be revisiting the prudence of cutting in November at all\u2014although a pause is not our base case,\u201d he wrote in a note.<\/p>\n<p>Lawrence Lindsey, a former Fed official who also served as director of the National Economic Council during the George W. Bush administration, <a href=\"https:\/\/www.cnbc.com\/video\/2024\/10\/04\/fed-may-have-to-pass-on-rate-cuts-at-next-meeting-to-preserve-soft-landing-says-lawrence-lindsey.html?&amp;qsearchterm=lindsey\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/www.cnbc.com\/video\/2024\/10\/04\/fed-may-have-to-pass-on-rate-cuts-at-next-meeting-to-preserve-soft-landing-says-lawrence-lindsey.html?&amp;qsearchterm=lindsey\" rel=\"noopener\" data-type=\"link\" data-id=\"https:\/\/www.cnbc.com\/video\/2024\/10\/04\/fed-may-have-to-pass-on-rate-cuts-at-next-meeting-to-preserve-soft-landing-says-lawrence-lindsey.html?&amp;qsearchterm=lindsey\">told CNBC Friday<\/a> that policymakers need to consider how their rate cut was followed by a jump in the 10-year Treasury yield, saying it may be a sign they are doing something wrong.<\/p>\n<p>\u201cSo my suspicion is that they\u2019re probably going to have to pass at the next meeting,\u201d he added.<\/p>\n<p>Further rate cuts, he warned, would validate expectations for sticky inflation that are underpinning demands for big wage hikes from workers at <a href=\"https:\/\/fortune.com\/company\/boeing\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/company\/boeing\/\" rel=\"noopener\">Boeing<\/a> and East Coast ports.<\/p>\n<p>Indeed, top economist Mohamed El-Erian said \u201c<a href=\"https:\/\/fortune.com\/2024\/10\/04\/jobs-report-el-erian-fed-rate-cuts-outlook-inflation-economy\/\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/10\/04\/jobs-report-el-erian-fed-rate-cuts-outlook-inflation-economy\/\" rel=\"noopener\">inflation is not dead<\/a>\u201d and that the Fed must maintain vigilance on price stability and the job market rather than focus exclusively on supporting full employment.<\/p>\n<p>Similarly, former Treasury Secretary <a href=\"https:\/\/x.com\/LHSummers\/status\/1842214555562258679\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/x.com\/LHSummers\/status\/1842214555562258679\" rel=\"noopener\">Larry Summers posted on X<\/a> that nominal wage growth, a key driver for inflation, doesn\u2019t appear to be decelerating and that the jobs report shows any additional rate cuts require a cautious approach.<\/p>\n<p>\u201cWith the benefit of hindsight, the 50 basis point cut in September was a mistake, though not one of great consequence,\u201d he wrote. \u201cWith this data, \u2018no landing\u2019 as well as \u2018hard landing\u2019 is a risk the @federalreserve has to reckon with.\u201d<\/p>\n<p>Apollo chief economist Torsten Sl\u00f8k, who has been steadfast in his view that rates will stay higher for longer, <a href=\"https:\/\/www.apolloacademy.com\/the-daily-spark\/?utm_medium=email&amp;utm_source=pardot&amp;utm_id=701Dp0000000wx2IAA\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/www.apolloacademy.com\/the-daily-spark\/?utm_medium=email&amp;utm_source=pardot&amp;utm_id=701Dp0000000wx2IAA\" rel=\"noopener\" data-type=\"link\" data-id=\"https:\/\/www.apolloacademy.com\/the-daily-spark\/?utm_medium=email&amp;utm_source=pardot&amp;utm_id=701Dp0000000wx2IAA\">said in a note on Saturday<\/a> that there\u2019s no need for more Fed cuts, citing the strong economy, low rates that consumer locked in earlier, fiscal spending, and AI-related business investment.<\/p>\n<p>Even before the jobs report, other data suggested the Fed\u2019s rate cut last month was already having a significant impact.<\/p>\n<p>For example, the Institute for Supply Management\u2019s services activity index for September came in stronger than expected.<\/p>\n<p>\u201cBusinesses are already starting to see activity and orders rebound as the Fed takes their foot off of the brake,\u201d <a href=\"https:\/\/fortune.com\/company\/comerica\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/company\/comerica\/\" rel=\"noopener\">Comerica<\/a> chief economist Bill Adams said in a note on Thursday.<\/p>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/fortune.com\/2024\/10\/05\/fed-rate-cuts-outlook-pause-november-fomc-meeting-jobs-report-economy-inflation\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street celebrated the Federal Reserve\u2019s half-point rate cut last month by sending stocks to fresh record highs, but the blockbuster jobs report on Friday has caused doubts to creep &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=110910\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-110910","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/110910","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=110910"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/110910\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=110910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=110910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=110910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}