Last week Jeremy Seigel was lambasted for screaming for a 75bp Federal Reserve emergency rate cut.
About that 75 basis point emergency cut…
As you’ll see from that linked post, he did pull his head in. I’m not sure what the point of screaming for such a panic move was. unless it was the publicity.
Moving on. Cooler heads have nevertheless argued for rate cuts before the September meeting.
Former NY Fed President Bill Dudley says an immediate rate cut is in order but is ‘very unlikely’
And, Alan Blinder also. Blinder is a professor of economics and public affairs at Princeton and served as vice chairman of the Federal Reserve from 1994-96:
the American jobs machine has slowedWhile the stars look to be aligning for a September rate cut, why wait?
Blinder called for a July rate cut in this Wall Street Journal (gated) piece.
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I think the chance of a cut prior to September is close to zero. But … Federal Reserve Chair Powell speaks at the Jackson Hole Aug 22-24 conference if he wants to surprise us.
This article was written by Eamonn Sheridan at www.forexlive.com.
