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Navigating Market Uncertainty Amid Expected Fed Rate Cuts
2024-09-05 17:55:08
Markets
Economy
Stocks

Navigating Market Uncertainty Amid Expected Fed Rate Cuts

Amidst expectations for Fed rate cuts, caution is advised as a larger 50 basis point cut could negatively impact stocks despite market enthusiasm. The upcoming jobs report will be pivotal in determining the timing and extent of rate cuts, with a strong report challenging current rate hike forecasts.

The labor market slowdown, moderating inflation, and Fed Chair Powell's signals point towards deeper rate cuts. Amidst this uncertainty, investors are advised to consider shifting from money-market funds to bonds.

While inflation control is showing progress, challenges persist, with the US recession looming as a top risk according to Fed Chair Powell.

Related news on that topic:

Economic Concerns Mount as Stock Market Fluctuates Amid Weak Data

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Read 14 more recent news on this topic

The press radar on this topic:

The Street
6. September 2024 um 18:03

Wealthy investors make an unexpected move on stocks, bonds TheStreet Daily Newsletter

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The Federal Reserve is likely to start cutting interest rates this month and continue for many months. Bond yields have fallen since rising earlier in the year. Investors should consider moving money from money-market funds to bond funds like Vanguard Total Bond Market ETF or individual bonds like a 5-year, single-A-minus-rated Bank of New York Mellon bond yielding 4.39% or a 10-year, single-A-minus-rated JPMorgan Chase bond yielding 5.13% before rates drop further, as bond values will rise as..
Yahoo Finance
5. September 2024 um 10:00

The market shouldn't cheer a larger rate cut in September: Morning Brief

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The text warns that a 50 basis point rate cut prompted by a weakening labor market could negatively impact stocks, despite the market's desire for lower rates and a Goldilocks economy, and notes that moderating inflation grants the Fed new arrows in its quiver as it turns to the other half of its mandate.
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5. September 2024 um 12:30

Macroscope | 4 reasons it’s too early to declare victory over inflation

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Inflation has fallen sharply in major economies, nearing 2% targets, prompting central bank policy adjustments. However, challenges remain, with a US recession now seen as the top market risk. Fed Chair Powell says policy must adapt due to inflation progress and labor market cracks.
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Bitcoin Flounders Ahead of Friday Jobs Report That Might Push Fed to Slash Rates by 50 Basis Points

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Bitcoin is currently trading around $56,300, down 5% over the last month and more than 23% from its record high above $73,500 reached six months ago. Despite the expectation of a 50 basis point Fed rate cut in September, which historically has been a positive catalyst for Bitcoin, the cryptocurrency has failed to rally and continues its downward trend.
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