Ahead Of FOMC Meeting Paul Krugman Says Fed Rates Will Be Elevated Even With 50 Bps Cut: 'Argument For Incrementalism Is Very Weak'
Portfolio Pulse from Shanthi Rexaline
Ahead of the FOMC meeting, Paul Krugman argues that even with a 50 basis-point rate cut, Fed rates will remain elevated. He suggests that the current economic conditions do not justify such high rates, while others like Peter Schiff warn against rate cuts due to potential inflationary pressures. The iShares TIPS Bond ETF (TIP) saw a slight increase, reflecting market reactions to inflation concerns.
September 17, 2024 | 6:35 am
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POSITIVE IMPACT
The iShares TIPS Bond ETF (TIP) increased by 0.34% as market participants anticipate potential rate cuts and inflationary impacts. This ETF is sensitive to inflation expectations, which are influenced by Fed rate decisions.
The TIP ETF is directly impacted by inflation expectations and Fed rate decisions. With discussions around a potential 50 bps rate cut, the ETF's slight increase reflects market anticipation of inflation protection needs.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80