Institution: Fed's 50 Basis Point Rate Cut Hints at Unnecessary Panic

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September 19, 2024
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GAM Investments' Chief Multi-Asset Investment Strategist, Julian Howard, expressed that it's hard not to sense a hint of unwarranted panic in the Federal Reserve's decision to cut interest rates by 50 basis points. He stated that for many, this signifies the beginning of a rate-cutting cycle aimed at supporting the US economy as inflation declines towards the target of 2.0%. He also noted that meanwhile, the US unemployment rate remains at 4.2%, which is considered low by historical standards over the past 30 years. The latest non-farm payroll report also demonstrated considerable strength, adding 142,000 jobs in August. (JinShi)

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