Federal Reserve's Potential Emergency Rate Cut

The article argues against making an emergency rate cut by the Federal Reserve based on recent economic indicators and historical data.

Stock Market Performance

Nasdaq 100 and S&P 500 close at record highs as tech stocks lead gains. U.S. Treasury Secretary Janet Yellen expresses optimism about disinflation progress. Market anticipates rate cut in September.

President Biden's prediction of a Federal Reserve rate cut

President Biden predicts a rate cut by the Federal Reserve despite rising inflation, which may not materialize before the election. His confidence in the rate cut is seen as out of touch with reality.

January-March Employment Boom Impact on June Rate Cut Forecast

The strong employment numbers in January-March make a June rate cut by the Federal Reserve highly unlikely, with the private sector showing significant job gains and the unemployment rate dropping to 3.8%. The market expectations for a rate cut in June have decreased after the latest job report.

Federal Reserve Rate Cuts and Inflation Risk

Atlanta Fed president Raphael Bostic warns that a rate cut from the Federal Reserve could rekindle inflation, urging caution in easing monetary policy. He highlights the risk of triggering a surge in business activity that could push inflation higher.