Expected Fed rate cuts and resilient economic growth sent stocks to all-time highs. Above-average stock valuation in light of fundamentals and the outlook are explored.
The reaction to the rate cut has been positive across the soft landing checklist. Odds of avoiding recession are higher following Chair Powell’s aggressive start.
A Fed rate cut is a virtual certainty, but the size of the cut is still uncertain. Most easing cycles have ended in recession, but there are reasons for optimism.
Fed Rate Cuts Coming: The Impact On Stocks And Bonds
This time may differ despite the Fed’s poor track record of avoiding recessions with rate cuts. Stocks are usually higher, and bond yields are lower after lowering rates.
Taking Stock: The State Of The Markets And Economy
Markets are pricing in a September Fed rate cut and a soft landing for the economy. Friday’s jobs report will be critical in determining the size of the Fed cut.
