Audio: explains in context what is happening right now.
AUDIO CORRECTION: I described stocks as being down 3 1/2% today. That is incorrect. I was thinking about the last two days behavior of stocks. Today they’re down 2.3% so far.
The following just came out from CITI as a reaction to the events described:
(Three weeks days ago CITI Dropped a rate cut bomb, calling for 7 cuts over the next 12 months. They are ahead of others on this it seems)
CITI: Fed to start with 50bp cuts
For some time we have highlighted risks that a gradual weakening in the labor market would at some point turn more rapid. This is much more evident in July employment data, with the unemployment rate rising to 4.3% alongside a more notable slowing in payroll job growth.
We now expect the Fed to start the cutting cycle with 50bp rate cuts in September and November, followed by 25bp cuts at each subsequent meeting until reaching a policy rate of 3- 3.25% by mid-2025.
AUDIO CORRECTION: I described stocks as being down 3 1/2% today. That is incorrect. I was thinking about the last two days behavior of stocks. Today they’re down 2.3% so far.
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