Federal Reserve Bank Chair Jerome Powell.Chip Somodevilla/Getty ImagesMacquarie strategists are warning of the possibility of a US recession without the Fed's rate cuts.US unemployment rose to 4.3% in July, and consumer sentiment was mixed in August.Investors are mostly eyeing a 25 basis point rate cut in September.The US economy risks a recession if the US Federal Reserve does not cut rates, according to Macquarie strategists in a Wednesday note.Their assessment is based on US jobs data and consumer sentiment."We're not saying that a recession is coming, but absent Fed rate cuts that will take place, a recession would be much likelier," wrote Thierry Wizman and Gareth Berry, FX and rates strategists at Macquarie, in a Wednesday note.The US unemployment rate rose to 4.3% in July from 4.1% in June, according to the Bureau of Labor Statistics.Meanwhile, the Conference Board consumer sentiment report released on Tuesday showed "mixed feelings.""Consumers' assessments of the current labor situation, while still positive, continued to weaken, and assessments of the labor market going forward were more pessimistic.
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htan@insider.com (Huileng Tan), Business Insider
Wed, 08/28/2024 - 10:02pm
Topics: we "consumers federal reserve bank chair jerome chip somodevilla/getty imagesmacquarie us federal reserve thierry wizman gareth berry fx june bureau labor statistics dana m peterson the conference board march fed chair jerome jackson hole wall street cme's fedwatch read business insider fed macquarie july us august september conference board peterson recession cut rates rates strategists unemployment jobs cuts mixed rose tuesday current assessments sentiment positive pricing wrote
BING NEWS:
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