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A financial expert and market analyst predicts that the Federal Reserve will be compelled to implement an emergency rate cut before its scheduled September meeting to mitigate the recent significant sell-off in equities. Robert Prechter, founder and president of Elliott Wave International, conveyed his concerns during an interview with Neil Cavuto on Fox Business, suggesting that the Federal Reserve missed a crucial opportunity at its previous meeting to address the ongoing market turmoil.
Prechter expressed his belief that an emergency rate cut is imminent due to the rapid decline in rates. The last time the Fed made such a move was during the early stages of the COVID-19 pandemic. However, many experts argue that another emergency cut could signal that the US economy is in dire straits, potentially exacerbating market anxieties.
In January, Prechter had warned that excessive optimism in the market posed a significant risk. He now asserts that this optimism has become deeply entrenched and that the world is witnessing the most inflated market in history.
Following the release of the July jobs report, which revealed a rise in unemployment to levels not seen since October 2021, global markets experienced a sharp downturn amid concerns that the US economy is faltering.
On Monday, the stock market continued to plummet, with the Nikkei 225 index in Tokyo, the world’s third-largest stock exchange, suffering its worst single-day decline in nearly four decades, plummeting by 12 percent. The S&P 500 dropped 3 percent, marking its most significant decline in nearly two years. The Dow Jones fell by 1,033 points, or 2.6 percent, while the Nasdaq composite slid 3.4 percent.
Bloomberg estimates that approximately $6.4 trillion has been erased from the value of global stock markets over the past three weeks.
According to Prechter, much of this could have been averted if the Federal Reserve had chosen to cut rates at its last meeting. He criticized the Fed for missing a crucial opportunity to lower the Fed funds rate by a quarter point.
Economists at Goldman Sachs have now increased the probability of the US entering a recession within the next year from 15 percent to 25 percent, while analysts at JP Morgan estimate a 50 percent likelihood.
Since March 2022, the Federal Reserve has been raising interest rates to combat inflation, but one prominent economist believes the agency is too focused on this single goal.
The chief economic advisor at Allianz, Mohamed El-Erian, has blamed the Fed for the current state of the market, arguing that the rate hikes are taking a heavy toll on the economy. He expressed concern that the US may lose its economic exceptionalism due to a policy mistake.
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Even if the Fed waits until September to cut rates, most industry observers anticipate a rate cut is inevitable.
JP Morgan analysts have written a memo suggesting that the Fed appears to be significantly behind the curve and predicts a 50 basis point cut at the September meeting, followed by another 50 basis point cut in November.
Investors now expect that other major central banks will follow the Fed’s lead and aggressively ease rates, with the European Central Bank anticipated to cut rates by 67 basis points by Christmas.
The anticipated rate cuts by the Federal Reserve could have a positive impact on gold prices. This is because when interest rates are lowered, interest-bearing investments like bonds become less attractive, and investors often turn to gold as an alternative investment. Additionally, gold prices have historically risen when the Federal Reserve has cut interest rates.
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Rep. Matt Gaetz: There Are Five Known Trump Assassination Teams in America
by The Gateway Pundit
President Trump’s life may be in greater danger than anyone, including himself, realizes according to a Florida congressman. As The Gateway Pundit reported, a second attempt was made on Trump’s life on Sunday, just two months after he came within a centimeter of being killed in Butler, Pennsylvania by a…
Is There a Mole Within the Secret Service?
by Townhall
There have been two attempted assassinations of former President Donald Trump, and both times, the suspects have known information only insiders would know about security. How could that be? Since Sunday’s attempted assassination of Trump, making it the second one in two months, several questions have still gone unanswered, such…
Diddy Reportedly Paid Off Home Mortgage Before Being Arrested
by The Dupree Report
New revelations emerged regarding Sean “Diddy” Combs’ opulent Miami estate during his recent bond hearing. In a dramatic turn of events in March, federal agents descended on the hip-hop titan’s luxurious abode on Star Island, uncovering what they allege were preparations for illicit gatherings known as “Freak Offs.” These events…
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Mike DeWine’s History Raises Concerns About Potential Conflict of Interest With Haitian Migrants
by Daily Caller
Republican Ohio Gov. Mike DeWine has faced a series of conflicts of interests on key issues in his state, including with the ongoing Haitian migrant crisis affecting Springfield. DeWine recently pledged support to Springfield to assist with the influx in Haitian migrants, according to Spectrum News. Over a period of…
The Coincidences Continue: New Details About Would-be Assassin Ryan Routh’s Wife
by American Greatness
As details continue to emerge about the man accused of attempting to shoot former president Donald Trump, one of the more curious developments involves Ryan Routh’s wife Kathleen Shaffer and her work. During questioning yesterday by Representative Matt Gaetz (R-FL), Homeland Security Investigations Executive Associate Director Chief Katrina W. Berger…
We Can Stop the Democrats From Rigging & Stealing This Election. Now. Today. Here’s How.
by Wayne Allyn Root
I have the solution to what’s coming on November 5th. But President Trump needs to act fast. He must make this high-profile, controversial, headline-grabbing, announcement TODAY! Trump is winning an electoral landslide. We all know that. In every credible and historically accurate poll, Trump is leading in the popular vote…
Congressional Probe Into Democrat Fundraising Platform, ActBlue, Finds Potential “Criminal Activity”
by Darlene McCormick Sanchez, The Epoch Times
(The Epoch Times)—A congressional investigation analyzing more than 200 million political contributions found potential “criminal activity” and referred the information to five state attorneys general for further review. The review involved donation reports from ActBlue, an online Democratic fundraising platform, to the Federal Election Commission, according to Rep. Bryan Steil…
Man Screaming ‘Allahu Akbar’ Stabs One to Death, Gravely Injures Another in the Netherlands
by Human Events
Witnesses said that the suspect began attacking people at random while shouting the Arab phrase meaning “God is great,” commonly used by Muslims. One person is dead and another is gravely wounded after a man screaming ‘Allahu Akbar’ and carrying two knives went on a stabbing spree late Thursday in…
Jeremiah 18:8, “If that Nation Against Which I Have Spoken Turns from Its Evil, I will Relent of the Disaster that I Planned to Bring on It”
by The Gateway Pundit
As the US Congress is debating the Continuing Resolution (CR) that authorizes the national budget, most are concerned about the government shut-down that will occur if the CR is not passed. “Woe!” is being sounded by various Congressional members announcing the calamitous ruin that will fall upon our nation if…
One GOP Lawmaker Says It Doesn’t Feel ‘Safe’ to Work in Politics
by Townhall
Republican Florida Rep. Anna Paulina Luna said in an interview this week that it does not feel safe to work in politics and that she’s been the target of threats. Luna made the remarks in an interview with Chris Cuomo on NewsNation. “The rhetoric that continues to be pushed…when you…
Bill Gates Launches New Netflix Series That Lays Out Mass Suicide Plan for Global Human Depopulation
by Ethan Huff, Natural News
(Natural News)—Scheduled for a Netflix launch on September 18 is a new docu-series from billionaire eugenicist Bill Gates that pushes the notion that “we have to give up hydrocarbons almost entirely,” among other anti-human ideas. Because the climate is currently not to the liking of Gates and his acolytes, major changes…