Institution: If tonight's non-farm payroll report shows weakness, the Federal Reserve is likely to cut interest rates by 50 basis points in September
President and CEO of Wealth Alliance, Eric Diton, stated, "I believe the Fed should cut interest rates by 25 basis points this week, but clearly they missed the opportunity. Then we see an increase in initial jobless claims, and the ISM Manufacturing PMI index has shown poor performance for the fourth consecutive month. Powell said he relies on data, and how the non-farm payroll data performs on Friday will be crucial. If we see very weak data, he is likely to cut rates by 50 basis points in September. Another issue is the federal debt, as we have $35 trillion in debt. The interest we are paying on this debt is now approximately 17% of our federal spending. So, interest is now draining the money we can use to make decisions."
On August 2nd, according to data from FXStreet, Eric Diton, President and CEO of Wealth Alliance, stated, "I believe the Fed should cut interest rates by 25 basis points this week, but obviously they missed the mark." Subsequently, we saw an increase in initial jobless claims, and the ISM Manufacturing PMI index has shown poor performance for the fourth consecutive month. Powell said he relies on data, and how the non-farm payroll data performs on Friday will be crucial. If we see very weak data, he is likely to cut interest rates by 50 basis points in September. Another issue is the federal debt, as we have $35 trillion in debt. The interest we pay on this debt is currently about 17% of our federal spending. Therefore, interest is now draining the money we can use to make decisions