Unwinding Of Japanese Yen Carry Trade Boosts The Case For 'Supersized' Rate Cut, Economist Says (CORRECTED)
Portfolio Pulse from Michael Juliano
The unwinding of the Japanese yen carry trade, driven by the Bank of Japan's interest rate hike, may prompt the Federal Reserve to consider a significant rate cut. Economist Joe Brusuelas suggests a fifty basis point cut could be on the table if market conditions worsen. The Dow Jones Industrial Average has already fallen 2.4%, and the Global X Dow 30 Covered Call ETF (NYSE:DJIA) has declined 1.71%.
August 05, 2024 | 7:54 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
The Global X Dow 30 Covered Call ETF (NYSE:DJIA) has declined 1.71% amid the unwinding of the Japanese yen carry trade and the potential for a significant Fed rate cut.
The ETF tracks the Dow Jones Industrial Average, which has fallen 2.4%. The potential for a significant Fed rate cut and ongoing market selloff are likely to continue impacting the ETF negatively in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80