Market is excessively optimistic on Fed cuts and trade, top economist warns

  • 📰 CNBC
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 72%

United States News News

United States United States Latest News,United States United States Headlines

Market optimism is reaching excessive levels, top economist warns (via TradingNation)

Tilley, who is on Wilmington Trust's investment strategy team and is a former economic advisor to the Philadelphia Fed, believes the central bank will cut rates by a half point in July — which is on the high side of Wall Street estimates.

"At this point, we think it's pretty much baked in that you're going to get those rate cuts on July 31," said Tilley. "The data is slowing down enough to merit what the Fed has done. And, that's to project that you get that rate decrease."He contends a lot is at stake for Wall Street right now as President Donald Trump and Chinese President Xi Jinping get ready. If their talks suffer a critical setback, Tilley predicts the record rally will fold.

"It really comes back to the trade and tariff. That is really what we need to watch," he said. "We had been at Wilmington Trust overweight U.S. equities for several years — up until that first week of May when the trade discussions sort of broke down."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

TradingNation Its about to blow

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Trade stress hits stocks, dollar frets on Fed dovesAsian shares were haunted by trade anxiety Tuesday while the risk of more dovish... I c
Source: Reuters - 🏆 2. / 97 Read more »