Analysts at Macquarie believe a significant miss in this week’s US inflation data is necessary to soften the Federal Reserve’s hawkish stance and potentially open the door for a December rate cut. The bank highlights the need for a substantial deviation in either or both the consumer price index (CPI) or core CPI numbers to alter the Fed’s current sentiment.
In an exclusive interview, Wes Edens, founder of Brightline and New Fortress Energy, shares his insights on the energy markets, the impact of geopolitical risks, and his belief that the Federal Reserve will lower interest rates later in the year.
The Federal Reserve’s focus on interest rates to combat inflation may not be effective given the shifting drivers of inflation. Healthcare, housing, and insurance costs are significant contributors to inflation, and addressing the structural issues and price-fixing in these sectors is crucial. Reliance solely on monetary policy may not suffice, and a broader approach considering sectoral factors is necessary.
David Rosenberg, founder and president of Rosenberg Research, discusses the bond trade, why the Federal Reserve is pivoting, and more.
Nvidia Corp and Advanced Micro Devices, Inc stocks witnessed a partial recovery on Monday following a significant selloff on Friday. Amidst concerns over the Federal Reserve’s interest rate hikes and geopolitical tensions, investors had grown wary of stocks that had previously benefited from the artificial intelligence boom. However, recent checks suggest that demand for AI-related products and services remains strong, with key players like Nvidia and AMD poised to benefit.
