Market On Open, Thursday 1 August
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Unemployment Line // When Will Rates Decline?
by Alex King
I am no kind of macro expert but even from my rabbithole deep underground in Chartsville I would observe that (i) inflation is already beaten in the US (ii) rates are at a restrictive level as measured by commentary coming out of consumer stocks right now and (iii) the Fed is not just late to its own party but to the global story. The EU, the UK, Switzerland, Canada and others have all started the cutting cycle. Chairman Powell signaled yesterday that a September cut is on the cards.
I pretty much agree with the below.
Unemployment data ticked up today vs expectations; for all the world it looks like the Fed is late to cut just as it was late to hike. This will have ramifications for securities, but probably not today. We have to just play the charts in front of us.
So Let’s Get To Work
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