CEOs Discussing Fed Policy On Earnings Calls Soars To Record

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The July FOMC meeting confirmed Powell and company are inching closer and closer to embarking on the interest rate cutting cycle. Rate traders are pricing in the first 25bps cut formid-September. The Fed will only move into a cut cycle if inflation data cooperates and economic activity deteriorates. The Fed's interest rate hiking campaign over the last 2.5 years has dented consumer spending and corporate profits, with borrowing costs slowing down the overall economy to tame inflation. While the first rate cut won'tmeaningfully make adifference for consumers, some of whom (low/mid-tier) are in rough shape, it will lowerborrowing costs for companies big and small.

ZeroHedge Opinion     Aug 01, 2024