Powell announces Fed rate cut; Goss explains why
"They're saying it's because they defeated inflation," Goss said. "No, that's not the reason now. That may be partially true, but, well, it is true they defeated inflation, but they brought the economy down as well, and the economy, the overall economy is not doing well."
How fast will they cut? Powell wasn't clear.
"The real issue right now is, is it going to be a quarter percent cut or a half percent cut," Goss said. "We could have a half percent cut, depending. Now, what individuals we all need to be watching out for is those first-time claims for unemployment insurance on each Thursday, but also on the employment report, which is issued on September the 6th. Very, very important."
Unemployment rising could be another harbinger of a bigger need for a rate reduction.
"Back in the 90s,
If that does happen, then it's not out of the realm to see a 50 basis point cut later next month.
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