Economists Endorse September Fed Rate Cut As Inflation Falls To March 2021 Level: 'The Policy Mistake Has Already Been Made'
Portfolio Pulse from Piero Cingari
Economists have endorsed a potential September rate cut by the Federal Reserve as the PCE price index drops to its lowest level since March 2021. The futures market predicts a 52 basis point reduction in the fed funds rate by December 2024, with a 68% probability of the first cut in September. Experts criticize the Fed for being late in adjusting rates and highlight the impact on consumer discretionary companies like Nike, Levi Strauss, and Walgreens Boots Alliance.
June 28, 2024 | 3:46 pm
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NEGATIVE IMPACT
Levi Strauss & Co. is cited as experiencing disappointing consumer reports, indicating potential challenges in the consumer discretionary sector.
Levi Strauss is mentioned as facing disappointing consumer reports, which could signal challenges in the consumer discretionary sector and negatively impact its stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Nike Inc. is mentioned as one of the consumer discretionary companies facing disappointing reports, indicating potential weakness in consumer spending.
Nike is highlighted as facing disappointing reports, suggesting weak consumer spending. This could negatively impact Nike's stock in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Walgreens Boots Alliance is mentioned as one of the consumer discretionary companies with disappointing reports, suggesting potential weakness in consumer spending.
Walgreens Boots Alliance is highlighted as facing disappointing reports, indicating weak consumer spending. This could negatively impact Walgreens' stock in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70