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Central Banks Prepare for Interest Rate Cuts in Response to ...
2024-09-10 05:50:09
Economy
Finance

Central Banks Prepare for Interest Rate Cuts in Response to Weakening Economies

As the US economy shows signs of weakness, the Fed and ECB are considering interest rate cuts in September. The ECB is expected to make additional cuts in December.

Powell, Ueda, and Lagarde are among the central bankers discussing these moves. The recent jobs report, with fewer-than-expected new jobs in August, adds to the case for larger Fed rate cuts.

Market experts are closely watching Bitcoin's fate, anticipating the impact of the Fed's decisions on its price amidst economic uncertainties and market tensions. The CME Fed Watch tool indicates high probabilities of rate cuts, with traders predicting a 0.25 or 0.50-basis point cut.

The Fed's policy decision is scheduled for September 18.

Related news on that topic:

ECB Poised to Cut Rates Again in Warm-Up for the Fed

The European Central Bank (ECB) is expected to cut interest rates once again in anticipation of cuts by the US Federal Reserve and the Bank of Canada. This coordinated easing is aimed at supporting economic growth. Policymakers will be closely monitoring inflation data from Mexico, Brazil, and Argentina, as well as an IMF review of Ukraine's economy. The upcoming rate cuts are seen as a positive stimulus for industries such as real estate, renewable energy, and heavily indebted companies. However, banks may face challenges due to narrower interest margins. Overall, the rate cuts are expected to be gradual and predictable, and the global economy is still projected to grow, albeit at a slower pace.

Analysis: August US Jobs Report Influences Market Expectations of ... Rate Cuts

The August US jobs report indicated slower job growth and a drop in unemployment, sparking expectations of a Fed rate cut. Analysts noted manufacturing weakness, increase in part-time roles, and decline in temporary help. The report's surprise raised the case for larger interest rate reductions. The market anticipates a significant cut, with debates on the extent. Fed Chair Powell aims for a 'soft landing' but acknowledges the need for action. Wall Street braces for potential shifts in response to the report, which is crucial in determining the timing and size of autumn rate adjustments. The labor market slowdown, coupled with economic indicators, suggests deeper rate cuts in the coming months.

Read 12 more recent news on this topic

The press radar on this topic:

The Street
10. September 2024 um 00:04

Jobs report surprise adds to case for bigger Fed interest rate cuts TheStreet Daily Newsletter

Economy
Finance
U.S. economy added fewer-than-expected 142,000 new jobs in August, with downward revisions, suggesting cooling labor market; Fed Chair Powell aims for "soft landing" but says they "do not seek or welcome further cooling"; U.S. stocks and Treasury yields fell, with CME Group pricing in 50 basis point rate cut odds at 57%; weekly jobless claims slipped, continued claims fell, and private sector job creation slowed; average hourly earnings rose, unemployment rate edged higher, but labor force par..
focus
9. September 2024 um 12:38

Lagarde and Powell Prepare for Interest Rate Moves - ECB and Fed Plan to Cut Key Rates in September

Economy
Finance
Politics
The US economy is weakening, with unemployment declining slightly. Experts see room for interest rate cuts by the Fed and ECB in September. According to Pimco, the ECB plans further cuts in December. Observers do not expect immediate stock market reactions. Central bankers like Powell, Ueda and Lagarde are meeting.
The Street
18. September 2024 um 12:40

Market tensions build as Bitcoin’s fate hangs on Fed rate cuts

Finance
Economy
Experts discussed Bitcoin's future and the impact of Federal Reserve's decisions, considering Bitcoin's potential price movements amid uncertainty surrounding interest rates and economic conditions, with market exhaustion and anticipation of upcoming Fed rate cuts as major factors. The CME Fed Watch tool showed traders pricing in a 70% chance of a 0.25-basis point cut, and a 30% chance of a 0.50-basis point cut. Experts predicted that rate cuts are inevitable due to the underlying issue with b..
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