Rate cut with stock market at all-time highs? It’s been done before — but here’s what’s different

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Rate cut with stock market at all-time highs? It’s been done before

Investors are puzzling over the apparent paradox presented by the combination of stocks trading at or near all-time highs and a Federal Reserve that appears ready to deliver an imminent rate cut.

2) It has never cut rates w/ the Unemployment Rate below 4%. Lowest unemployment rate w/ a rate cut was 4.2% in Jan 2001. pic.twitter.com/wTN5euriBF “If the Fed actually does the cut in July this year, I think this will be the first insurance cut, if you will,” Schulze said, in an interview. “With growth having yet to deteriorate in any significant way — again, we look to be on the precipice of getting a 4% real consumer growth print for 2Q — we are no longer talking about a soft landing approach here, but rather supporting an above-potential economic backdrop,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets, in a note.

 

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Cause China trade war so it's different

Hey, no choice when fed chair is being bullied by trump. He has to give in or lose his job as threatened by dictator wannabe imo

The Fed looks at many measures in the economy. The Fed is undershooting its inflation target of 2%. May was 1.8%, June was 1.6% Concern about slow growth outside the US and risks of trade frictions makes a small rate cut the prudent move.

Nothing good happened after FED cut the rate in 1998. They just help to inflate 'Market Bubble that burst in 2001 leading to Recession

xrp

Buy gold and bitcoin.

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Source: WSJ - 🏆 98. / 63 Read more »