Nigel Green, CEO of deVere Group, a prominent financial advisory firm, predicts that the Federal Reserve is poised to cut US interest rates in September.
He emphasizes that failing to do so would risk unsettling markets, given the solid expectations and pricing already factored in by analysts.
Recent inflation indicators are pivotal, particularly the PCE price index, which is due to be released. Green suggests a favourable inflation report would solidify the case for a rate cut, which markets have almost entirely priced in. He highlights that recent data showing a cooling inflation trend supports the need for a rate adjustment to sustain economic momentum.
Green points to the Federal Reserve’s mandate of promoting maximum employment and stable prices, arguing that the current economic conditions and market signals strongly advocate for a rate reduction. He stresses that such a move would ease pressures on sectors like technology, spur investment, and bolster market confidence.
In conclusion, Green underscores that a September rate cut appears highly probable given the economic landscape and market expectations. Failing to act, he asserts, would not only miss a crucial opportunity but also undermine the Fed’s commitment to its economic mandates.
