The most accurate analyst on Wall Street: It's no longer about “to cut or not to cut”, or “when to cut”, but rather “whether cutting interest rates is still effective”.
According to Michael Hartnett, Chief Strategist at Bank of America, significant interest rate cuts from the Federal Reserve are necessary to prevent a recession. If certain key indicators are breached, the Wall Street narrative will shift from a soft landing to a hard landing. Hartnett recommends focusing on the US NFIB Small Business Confidence data, which will be released on Tuesday.
Treasury Yields Rise as Attention Turns to Inflation Data
US bond market: Recession concerns eased, US bond yields significantly reversed.
After a turbulent week, the global bonds market has calmed down as concerns about potential economic downturn in the USA recede.
Fall in 10-Year U.S. Treasury Yields Might Be Too Quick -- Market Talk
Will the financial market welcome a "heavy bullish"? The Federal Reserve may end this round of asset reduction by the end of this year.
Since June 2022, the Federal Reserve began implementing quantitative tightening policy, known as shrinking its balance sheet (QT); some Wall Street strategists have said that even though the pace of the balance sheet reduction has slowed recently, it is unlikely that a sudden announcement to end the balance sheet reduction will be made.
Fed Rate-cut Fervor Is Gripping Wall Street Again. That Could Set up Markets for Another Trap