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<ul><li>Indian benchmark indices slipped sharply in the last few trading hours on Tuesday mirroring weak cues from the global markets.</li><li>Investors are worried that the <keyword id="117388" type="General" weightage="20" keywordseo="us-fed" source="Orion">US Fed</keyword> may hike interest rates aggressively while pulling back economic stimulus measures.</li><li>As a result, the 10-year US Treasury yield jumped to its highest point in two years at 1.83%.</li></ul>Indian markets witnessed a sharp sell-off today (January 18) mirroring the fall in Asian markets on expectations that the US Fed may hike interest rates aggressively while pulling back economic stimulus measures. Last week, US Fed Chairman Jerome Powell told the US senate that he expected to see a series of interest rate hikes this year, along with a pull back in other pandemic economic support measures. This means that the US Fed will reduce its holdings of treasury bonds, which triggered the 10-year US Treasury yield that jumped to its highest point in two years at 1.83%. <a href="https://www.cnbc.com/2022/01/10/goldman-predicts-the-fed-while-hike-rates-four-times-this-year-more-than-previously-expected.html">Reports </a>say that the US Fed may hike interest rates four times this year, more than previous forecast of three times. The estimate comes amid rising inflation and a tightening job market in the US. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Global markets </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change as of January 18 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TSEC 50 Index (Taiwan) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.79% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sensex (India) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.90% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hang Seng (Hong Kong) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.43% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nikkei 225 (Japan) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.27% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ASX All Ordinaries (Australia) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.05% </td></tr></tbody><tbody></tbody><tbody></tbody></table>Amid the volatility in the Indian markets, shares of automobile companies, IT companies, metal, FMCG, pharma companies were under pressure. Surge in crude oil prices along with sell off by foreign institutional investors (FIIs) added to the volatility. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Maruti Suzuki </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Consumer Products </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.94% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ultratech Cements </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.81% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Eicher Motors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.67% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Grasim Industries </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.62% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.48% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.07% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JSW Steel </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.88% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">UPL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.76% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Motors </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.68% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Steel </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.67% </td></tr></tbody><tbody></tbody><tbody></tbody></table> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/automakers-are-rising-car-prices-amid-weak-sales-and-rising-input-costs/articleshow/88971438.cms">After Maruti, now Tata Motors raises car prices marginally</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/mobile/news/smartphone-under-30000-rs-segment-has-nearly-doubled-in-the-last-one-year-as-per-xiaomi-cbo/articleshow/88969336.cms">INTERVIEW: The sub-₹30,000 smartphone segment has nearly doubled in the last one year, says Xiaomi India’s chief business officer</a>

Sensex deepens on fear that US Fed may hike interest rates soon

<ul><li>After an aggressive rate-hiking cycle that lasted nearly two years, the Fed is expected to start cutting rates in 2024.</li><li>Moderating inflation and a resilient economy suggests the Fed could cut rates several times.</li><li>Here's what Wall Street expects the Fed to do next year with a key input for the US stock market and economy.</li></ul>Interest rates have soared since the start of 2022, as the Federal Reserve sought to delicately tame inflation without derailing the economy by hiking rates.Since its last interest rate hike in July, it seems the Fed <a href="https://www.businessinsider.com/high-inflation-goods-durables-deflation-groceries-expensive-federal-reserve-cars-2023-12">has made solid progress in lowering inflation</a> without hurting the labor market and broader economy. This has spurred many analysts on Wall Street to forecast significant interest rate cuts next year.No matter what the Fed does with monetary policy in 2024, investors should pay close attention, as rates represent a significant input for the broader economy and stock market valuations. It matters for consumers too, as interest rate cuts from the Fed <a href="https://www.businessinsider.com/mortgage-rates-drop-fastest-pace-2008-housing-market-crash-2023-12">would likely translate into lower mortgage and auto loan rates.</a>Here's a rundown of what Wall Street expects the Fed to do with interest rates in 2024.UBS: The Fed will cut interest rates by 275 basis points The US economy will enter a recession in 2024, according to UBS, and <a href="https://www.businessinsider.com/fed-rate-cuts-forecast-2024-full-accommodation-economic-contraction-unemployment-2023-11">that will spark the Fed to aggressively cut interest rates next year.</a>The Swiss bank said in a note last month that it expects the Fed to cut rates by 275 basis points next year, which translates into a whopping 11 interest rate cuts from the Fed, assuming they cut by 25 basis points each time.he Fed's cuts would be "a response to the forecasted US recession in Q2-Q3 2024 and the ongoing slowdown in both headline and core inflation," UBS said. UBS expects the interest rate cuts to begin during the Fed's March FOMC meeting.Macquarie: The Fed will cut interest rates by 225 basis pointsThe combination of higher interest rates and the Fed's quantitative tightening policies, which it is using to reduce the amount of bonds it holds on its balance sheet, means that the monetary conditions are a lot tighter than they might appear on the surface. The San Francisco Fed's proxy Fed Funds rate is at 6.7% right now.That fact, combined with a likely continued decline in inflation thanks to slowing rent increases, suggests to Macquarie that the Fed will cut interest rates by 225 basis points next year."The Fed hasn't yet abandoned its 'high for long' narrative adopted in late September. But we and our economists are of the view that we may see the Fed Funds rate cut by -225bps in 2024," Macquarie said in a note on Friday.ING Economics: The Fed will cut interest rates by 150 basis pointsModerating inflation, <a href="https://www.businessinsider.com/category/job-market" rel="">a cooling jobs market,</a> and a deteriorating outlook for consumer spending mean the Fed may need to cut interest rates more than the market expects. "We have modest growth and cooling inflation and a cooling labour market — exactly what the Fed wants to see," ING's chief international economist, <a href="https://www.businessinsider.com/economy-slowdown-interest-rates-outlook-federal-reserve-cuts-next-year-2023-11">James Knightley, wrote in a note last month.</a> "This should confirm no need for any further Fed policy tightening, but the outlook is looking less and less favourable."Knightley says he expects the Fed <a href="https://www.businessinsider.com/fed-rate-cuts-forecast-2024-full-accommodation-economic-contraction-unemployment-2023-11" rel="">will start cutting interest rates in the second quarter of next year,</a> delivering as many as six 25-basis-point rate cuts totaling 150 basis points. He also says he expects the interest-rate cuts to extend into 2025 with at least four 25-basis-point interest-rate cuts.The market: Investors expect the Fed to cut interest rates by 125 basis pointsAccording to the <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html" target="_blank" rel="noopener">CME's FedWatch Tool</a>, futures markets are pricing in rate cuts totaling 125 basis points next year. That would put the Fed Funds rate in a range of 4.00%-4.25%, compared to the current range of 5.25%-5.50%. Barclays: The Fed will cut interest rates by 100 basis pointsContinued resilience in the economy next year will make the Fed cautious about cutting interest rates too aggressively, according to <a href="https://www.businessinsider.com/federal-reserve-interest-rate-cut-outlook-economy-inflation-bond-yields-2023-12">a recent note from Barclay's.</a>The firm expects the Fed to cut interest rates by 100 basis points next year, followed by another 100 basis points of cuts in 2025. Barclay's said investors are too pessimistic about the economy's continued resilience, which could fuel a return of inflation. That's why the Fed may be slow to cut interest rates throughout 2024, according to the note.The Federal Reserve: The Fed expects to cut interest rates by 75 basis pointsThe median projection of the <a href="https://www.businessinsider.com/interest-rates-fed-pauses-increases-december-rate-cuts-powell-inflation-2023-12">Fed's most recent "dot plot" chart</a> puts the Federal Funds Rate at 4.6% at the end of 2024, representing three 25-basis-point rate cuts for all of next year.The projection, released at the Fed's December FOMC meeting on Wednesday, signals that the Fed is turning more dovish as inflation continues to moderate. The Fed's previous dot plot projection, released in September, had suggested no more than two 25-basis-point cuts in 2024.If the Fed's updated projection is correct, then the market has gotten ahead of itself in forecasting as many as five quarter-point cuts, and that could ultimately provide a bout of volatility for the stock market. But that didn't happen on Wednesday, as stocks surged following the Fed's FOMC statement. Goldman Sachs: The Fed will cut interest rates by 50 basis pointsFalling inflation and "healthy" economic growth suggests to Goldman Sachs that the Fed won't be in a hurry to cut interest rates next year.The bank said it expects the Fed to cut rates by 50 basis points next year, with the first interest rate cut occurring in the third quarter of 2024."Healthy growth and labor market data suggest that insurance cuts are not imminent," Goldman Sachs' chief economist Jan Hatzius said in a recent note. "But the better inflation news does suggest that normalization cuts could come a bit earlier than our previous forecast of [the fourth quarter of 2024]."Two interest rate cuts next year would put the Fed Funds rate in a range of between 4.75% and 5.00%.

How many times will the Fed cut rates? Here's what Wall Street expects for the key stock-market driver in 2024.

<div class="KonaFilter image-container display-table"><div><div class="image"></div></div></div><ul><li>The Federal Reserve is today announcing their decision on whether or not to cut interest rates. </li><li>Most are expecting a rate cut of 25 basis points, which would bring down the target rate interest rate to just over 2%. </li><li>Here's the four most important elements to look out for in the Fed's decision. </li><li><a href="https://markets.businessinsider.com/">View Markets Insider for more stories. </a></li></ul>The Federal Reserve will make its decision on interest rates on Wednesday, in a much anticipated decision that may see the first rate cut in more than a decade. Most market watchers are expecting the Fed to cut rates by 25 basis points.The Fed has not cut its interest rate since the the last time America's economy was in danger, in December 2008, so cutting rates is quite a big deal.Fed Chair Jerome Powell, has signaled that uncertainties and threats from President Trump and his trade war, as well as a global slowdown in the economy justify the cut, which <a href="https://www.usnews.com/news/politics/articles/2019-07-30/3-things-to-watch-for-from-the-federal-reserve-on-wednesday">US News describes</a> as a "kind of insurance policy against another economic downturn."Here are four things to know before the announcement. <h2>1. How does the Fed tell us about rate changes? </h2><a href="https://uk.reuters.com/article/uk-usa-fed-q-a-idUKKCN1TK2CO">Reuters</a> reports that "The Federal Open Market Committee, the Fed's policy-setting arm, issues a written statement at the end of each of the eight scheduled meetings it holds in Washington every year." These statements describe how the economy is doing and what it believes interest should be to get maximum employment and price stability. The Fed's current policy rate is set in a range of 2.25% to 2.5% but the expectation is for this to drop to 2% to 2.25%. The decision is usually in the second or third paragraph of the statement. <h2>2. Why is the fed cutting rates? </h2>Well from the surface of it the US economy looks good, unemployment is low, and inflation isn't far off the US central banks 2% target but policy makers are flagging risks for the US economy. Citing job growth slowing, a global economic slowdown which is hitting US factories in particular as well as the China trade war. Also Trump has been pressuring the Fed to cut rates, saying: "I'd like to see a large cut, and I'd like to see quantitative tightening immediately stopped," according to the <a href="https://www.ft.com/content/04b3bd1a-b2e1-11e9-8cb2-799a3a8cf37b">Financial Times</a> adding "They moved in my opinion far too early and far too severely, and puts me at somewhat of a disadvantage."Plus Japan and Europe's economies are struggling. In doing so it pulls down everyone else's yields lower forcing the Fed into action according to Neil Wilson, Chief Market Analyst at Markets.com<h2>3. So they announce the cut. What next? </h2>According to the <a href="https://www.ft.com/content/1ad1a20c-b2db-11e9-8cb2-799a3a8cf37b">Financial Times</a>, after the cut is announced, the Fed will signal whether or not to continue easing monetary policy over the next few months. It may not come in a FOMC statement but in Powell's remarks later.Powell recently has been signaling risks to the US outlook, but could yet say that the central bank isn't fully convinced we need more cuts. It isn't likely we'll get anything concrete.<h2>4. How will markets react? </h2>Markets will be the first to tell Powell how the Fed's decision will be received. The Financial Times said: "Traders are currently pricing in three more rate cuts over the next year, after the 25-basis-point reduction this week." What this means is if the Fed doesn't signal it's future monetary policy clearly, investors will let Powell know. Mario Draghi found this last week when he underwhelmed with details about how the European Central Bank will provide more stimulus. <a href="https://www.businessinsider.com/intelligence/future-of-fintech?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=finance&amp;itm_campaign=future-of-fintech-2"></a>

Here are the 4 most important things to know before today's Fed decision

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Yuri Gripas/ReutersFederal Reserve Board Chairman Jerome Powell.</div></div></div><ul><li>Both bond and stock markets have priced in at least one interest rate cut by the Federal Reserve before the end of the year. </li><li>Even though the Fed didn't cut rates at its June meeting, the market edged higher on perceived dovish language from Chairman Jerome Powell. </li><li>Some industry watchers aren't convinced that a rate cut is warranted yet, citing economic conditions and shifting sentiment on the trade war. </li><li><a href="https://markets.businessinsider.com/">Read more on Markets Insider. </a></li></ul>Perhaps contrary to popular belief, the market is not a magic ball for predicting the Federal Reserve's actions.The Fed's decision to<a href="https://markets.businessinsider.com/news/stocks/fed-meeting-june-officials-expected-to-hold-interest-rates-steady-2019-6-1028292399"> hold interest rates steady in June</a> while indicating a dovish stance for lowering rates in the future sent both stocks and bonds rallying, further pricing in rate cuts that investors expect before the end of the year.But some industry watchers are starting to question if rate cuts are actually on the horizon, pointing to the possibility that markets have misinterpreted the Fed's message."While some easing is likely, we suspect that investors have misjudged the Fed's 'reaction function,' and are overestimating the extent to which it will be prepared to act in the near term," Oliver Jones of Capital Economics wrote in a note Monday.He notes that the market is pricing in more than 100 basis points of rate cuts through 2020, which is more than the Fed has ever delivered outside of a recession in the last 30 years. In addition, he disagrees that the inverted yield curve between the 10- year US Treasurys and 3-month bonds- long-considered a sign that recession is looming -means that the Fed will act swiftly to cut rates and stimulate the slowing US economy. Instead, any subsequent recovery from a slowing economy is probably farther away and will be less helpful than the market currently thinks, he said. If the Fed does indeed disappoint by not lowering interest rates as much as the market expects, he predicts that Treasury yields will edge up slightly and the S&amp;P 500 will fall sharply.Other industry watchers disagree that the US economy has slowed enough to warrant rate cuts on their own. Instead, they cite mounting global trade tension as a main reason that the Fed would move rates lower this year. The trade war and the possibility of further escalation between the US and China has driven market volatility as of late and has been named a top<a href="https://www.businessinsider.com/bank-of-america-fund-manager-survey-fms-cash-level-buy-2019-6"> fear for investors</a>. While US and global economic data has disappointed lately, there have been mixed signals from economies this year.In addition, the Fed has had continued to have trouble trouble meeting its target of 2% inflation, raising concerns about global growth, something Fed Chair Jerome Powell addressed <a href="https://www.insider.com/fed-meeting-june-officials-expected-to-hold-interest-rates-steady-2019-6">at the last meeting.</a> Trade tension has the potential to tip the scale either positive or negative. It seems to some that amidst these ever-shifting conditions, the Fed will wait to cut rates until there is a clearer picture of what is happening in the global economy."In our view, the Fed doesn't seem to have a clear picture of how the larger picture is likely to turnout in the coming months, so don't bank on a rate cut just yet," wrote Ed Yardeni of Yardeni Research in a note Monday.He also called out the shifting language of the Fed at its June meeting, when it dropped the word "patient" from the FOMC statement. Further, earlier in the month Powell said he'd do what was "appropriate" in response to trade anxiety.But "appropriate" doesn't mean an immediate rate cut, Yardeni said. Thinking that the same language is predicting a rate cut at the next meeting may be premature, especially if the data doesn't add up. To be sure, 100% of economists surveyed by Bloomberg currently expected the Fed to cut rates by at least 25 basis points at the July FOMC meeting. It's an outcome that would become even more likely if trade talks between the US and China deteriorate, or the situation in the Middle East escalates, as that would likely hamper global economic growth, making stimulus that much more necessary.Yardeni says, however, that especially if the Middle East conflict leads to soaring oil prices, rate cuts might not be enough to avoid a global recession. He also isn't convinced that a rate cut is definitely coming in July, he said. Others think that trade could have the opposite effect. John Stoltzfus, the chief investment strategist at Oppenheimer Asset Management, said in a note Monday that a resolution of the US-China trade conflict could prompt the Fed to<a href="https://markets.businessinsider.com/news/stocks/fed-decision-rate-cut-delay-amid-trade-deal-john-stoltzfus-2019-6-1028302849"> reverse its course and raise rates</a>. <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/google-kill-products-hangouts-googleplus-stadia-2019-5">Google's 'see what sticks' approach can leave users skeptical about the longevity of new Google services</a></h3> <div> </div> </div>

Both stock and bond markets are predicting rate cuts this year - but some industry watchers aren't sure the Fed should play ball

<ul class="summary-list"><li>US stock upside was limited as investors await further Fedspeak this week.</li><li>This week's comments from Jerome Powell pressured indices down. More Fed officials are set to speak Tuesday and Wednesday.</li></ul>US stocks rose on Tuesday, with investors still deciphering what to expect from future monetary policy following the lastest comments from the Federal Reserve. Stocks fell Monday after Federal Reserve Chairman Jerome Powell reaffirmed that the central bank was not yet ready to cut interest rates. His comments, aired in a weekend <a href="https://www.businessinsider.com/powell-60-minutes-interview-fed-interest-rate-cuts-before-election-2024-2?utm_medium=ingest&amp;utm_source=markets">interview with "60 Minutes,"</a> also triggered a 13 basis point rise in the 10-year yield, though the retreat steadied on Tuesday.Monday also saw another strong economic data point in the ISM reading for January, which showed manufacturing new orders rose more than five points and jumped above 50 for the first time since March 2022. The data underscores the idea that the Fed may be in no rush to cut interest rates as the US economy remains on solid footing. More Fed officials are set to speak this week, including Fed Presidents Loretta Mester and Patrick Harker. Following their Tuesday comments, Adriana Kugler and Tom Barkin will follow on Wednesday.Earnings are also still in focus for investors. <a href="https://markets.businessinsider.com/stocks/pltr-stock">Palantir Technologies</a> soared over 20% after the opening bell following its big fourth-quarter earnings beat, while earnings strength also pushed <a href="https://markets.businessinsider.com/stocks/lly-stock">Eli Lilly</a> to jump nearly 4%. Here's where US indexes stood at the 9:30 a.m. opening bell on Tuesday: <ul><li><a href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 4,955.43, up 0.25% </li><li><a href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 38,509.18, up 0.33% (+127.18 points)</li><li><a href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq Composite</a>: 15,637.04, up 0.25% </li></ul>Here's what else happened today: <ul><li>In six weeks, Nvidia's <a href="https://markets.businessinsider.com/news/stocks/nvidia-tesla-stock-price-market-cap-huang-musk-ai-microchips-2024-2">stock surged by almost the amount Tesla is worth.</a></li><li>Beijing intervention rumors spark <a href="https://markets.businessinsider.com/news/stocks/stock-market-news-today-china-economy-eli-lilly-ford-snap-2024-2">big moves in Chinese stock markets.</a></li><li><a href="https://markets.businessinsider.com/news/currencies/bitcoin-crypto-mining-electricity-energy-us-government-cryptocurrency-australia-eia-2024-2">Crypto miners used the same amount of electricity as Australia</a>, the EIA says.</li></ul>In commodities, bonds, and crypto: <ul><li><a href="https://markets.businessinsider.com/commodities/oil-price?type=wti&amp;utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">West Texas Intermediate</a> crude oil climbed 0.8% to $73.36 a barrel. <a href="https://markets.businessinsider.com/commodities/oil-price?utm_medium=ingest&amp;utm_source=markets">Brent crude</a>, the international benchmark, rose 0.72% to $78.64 a barrel. </li><li><a href="https://markets.businessinsider.com/commodities/gold-price?utm_medium=ingest&amp;utm_source=markets">Gold</a> inched 0.14% up to $2,045.50 per ounce. </li><li>The 10-year Treasury yield dropped two basis points to 4.135%.</li><li><a href="https://markets.businessinsider.com/currencies/btc-usd?utm_medium=ingest&amp;utm_source=markets">Bitcoin</a> gained 0.45% to $42,838. </li></ul>

US stocks edge higher as investors contemplate Fed rate-cut timing

<ul class="summary-list"><li>Bill Ackman said in a Bloomberg podcast he expects the US Federal Reserve to cut rates soon.</li><li>He said the US economy risks a sharp downturn if the Fed doesn't cut interest rates soon.</li></ul>Bill Ackman expects the US Federal Reserve to cut rates as early as the first quarter of next year.The Fed needs to cut interest rates soon to avoid a sharp downturn in the US economy, the billionaire investor said on Bloomberg's <a target="_blank" class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2023-11-28/bill-ackman-bets-fed-will-cut-rates-as-soon-as-first-quarter">"The David Rubenstein Show: Peer-to-Peer Conversations."</a>"I think there's a risk of a hard landing if the Fed doesn't start cutting rates pretty soon," said Ackman, founder of hedge fund Pershing Square with <a target="_blank" class="editor-rtfLink" href="https://pershingsquareholdings.com/pershing-square-holdings-ltd-releases-monthly-net-asset-value-and-performance-report-for-october-2023/">$16 billion</a> in assets under management.The Fed has <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.federalreserve.gov/monetarypolicy/openmarket.htm">raised interest rates</a> 11 times since March 2022 in an effort to cool soaring inflation. Inflation hit a <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://www.businessinsider.com/inflation-when-back-to-normal-cpi-federal-reserve-economic-outlook-2023-11">3.2%</a> increase in October, compared to October 2022. That's still above the Fed's 2% inflation target.The Fed funds rate target rate is now in the 5.25% to 5.5% range, which is "very high" when inflation trends below 3%, Ackman told Rubenstein, cofounder and co-chairman at the private equity giant Carlyle Group."What's happening is the real rate of interest, which is what impacts the economy, keeps increasing as inflation declines," Ackman added.<a target="_blank" class="editor-rtfLink" href="https://www.businessinsider.com/personal-finance/what-is-the-federal-funds-rate">Higher interest rates</a> dampen spending and control price rises. They also curb business investment, in turn slowing the economy. While this is desirable in an economy that is <a target="_blank" class="editor-rtfLink" href="https://markets.businessinsider.com/news/stocks/us-economy-jobs-report-hot-stocks-bond-yields-rates-fed-2023-10">running too hot,</a> there are concerns about slowing it too much amid <a target="_blank" href="https://www.businessinsider.com/stock-market-outlook-2024-inflation-economy-oil-prices-bond-yields-2023-11?utm_campaign=business-sf&amp;utm_medium=social&amp;utm_source=twitter">macroeconomic uncertainties</a> including fallout from the <a target="_blank" href="https://www.businessinsider.com/israel-hamas-world-war-global-recession-financial-crisis-economy-rickards-2023-10">Israel-Hamas war</a> and <a target="_blank" href="https://www.businessinsider.com/china-economy-global-markets-xi-deflation-property-housing-evergrande-developers-2023-8">China's flagging economy</a>.A <a target="_blank" class="editor-rtfLink" href="https://www.businessinsider.com/more-central-banks-cut-interest-rates-hike-federal-reserve-deutsche-2023-11">Deutsche Bank analysis</a> last week showed that for the first time since January 2021, there are more central banks cutting rates than those hiking them.While major central banks like the Fed and the <a target="_blank" class="editor-rtfLink" href="https://www.reuters.com/markets/rates-bonds/ecb-hold-rates-may-discuss-quicker-bond-portfolio-run-off-2023-10-25/">European Central Bank </a>are keeping rates steady right now, there are bets that they, too, will start to <a target="_blank" class="editor-rtfLink" href="https://www.reuters.com/markets/europe/morgan-stanley-sees-first-ecb-rate-cut-june-2024-2023-11-13/">hike rates</a> in the months ahead.<a target="_blank" class="editor-rtfLink" href="https://www.businessinsider.com/stock-market-outlook-2024-recession-fed-interest-rate-cuts-ubs-2023-11">Swiss bank UBS,</a> for one, said earlier this month it's expecting the Fed to slash rates as the US economy enters a recession around the second or third quarter of next year.A global trend in interest rate cuts would bring relief to debtors as it would lower the cost of borrowing for anything from mortgages to credit cards."There's been a huge subsidy in terms of low-interest rates, and most companies fix their rates or their debt at very low rates, and certainly real estate investors did the same," said Ackman, referring to much lower interest rates before the Fed's current rate hike cycle. "That works until it doesn't work."

Bill Ackman says the US economy faces a real risk of a 'hard landing' if the Fed doesn't cut interest rates soon

<ul class="summary-list"><li>David Rubenstein told Fox Business News he isn't expecting a recession in the next few quarters.</li><li>The billionaire investor said he expects the Fed to start cutting rates in 2024's second quarter.</li></ul>Billionaire investor David Rubenstein isn't expecting a US recession in the next few quarters, he told <a target="_blank" href="https://www.foxbusiness.com/video/6342908982112">Fox Business Network</a> last week.Rubenstein, a co-founder of investment giant Carlyle Group, told the network that US economy seems to be "doing pretty well," so it's unlikely for a recession to hit in the next few quarters."We have recessions every seven years, so at some point, there will be a recession. But it doesn't seem like one is imminent in the next couple of quarters or so," he added.The Fed last Wednesday signaled three interest rate cuts for 2024 even though inflation is running above its 2% target. The central bank has held rates steady since July after hiking them 11 times since March last year to dampen inflation and cool a red-hot US economy.However, there have been concerns the Fed's rate increases could tip the US into a downturn.The <a target="_blank" rel="" href="https://www.businessinsider.com/fed-interest-rate-cuts-warning-sign-economy-outlook-inflation-recession-2023-12">Fed typically cuts rates</a> in anticipation of a recession, as lower borrowing costs stimulate demand, so there are now expectations that the US could be slowing soon.However, rate hikes next year may not be the signal for recession that it was once, <a target="_blank" href="https://www.businessinsider.com/fed-interest-rate-cuts-warning-sign-economy-outlook-inflation-recession-2023-12">Business Insider's Matthew Fox</a> wrote last week following the Fed's rate decision.Rubenstein predicts the Fed is likely to start cutting rates in the second quarter of next year after it's sure it has gotten inflation under control. In November, the Consumer Price Inflation rose <a target="_blank" rel="" href="https://www.businessinsider.com/inflation-consumer-price-index-november-economic-outlook-fed-interest-rate-2023-12">3.1% year-over-year</a>. While this was still under the Fed's 2% target, it was significantly below the 40-year high of <a target="_blank" rel="" href="https://www.businessinsider.com/inflation-cpi-price-growth-june-2022-7">9.1% in June last year.</a>The Fed also likely wants to avoid cutting rates too close to the US presidential election in November."Clearly, if you have rate cuts in the third quarter, it will be seen as something to help the Democrats. And I suspect that criticism is one the Fed would like to avoid," he explained on Fox.

Billionaire investor David Rubenstein says he doesn't think there'll be a recession in the next few quarters even amid the Fed's rate cut signal

<ul class="summary-list"><li>Nomura economists expect the Fed to cut interest rates by 0.25 percentage points next week.</li><li>They think the Fed could pivot from its aggressive rate hikes due to "looming financial stability risks."</li></ul>Some high-profile experts are starting to expect the US Federal Reserve could not only halt its aggressive rate hikes amid the banking crisis — but also cut rates altogether. Economists at Nomura expect the Fed to reverse its aggressive tightening policy and cut the benchmark interest rate by 25 basis points at its meeting next week amid the US banking crisis, according to a Monday note seen by Insider.Nomura's prediction came as the US banking sector continues to be rattled by the collapse of <a href="https://www.businessinsider.com/how-silicon-valley-bank-imploded-2023-3">Silicon Valley Bank</a> and <a href="https://www.businessinsider.com/signature-bank-shut-down-by-regulators-depositors-bailed-out-2023-3">Signature Bank, New York</a> over the last few days after a run on deposits which spurred fears of a contagion in the broader financial crisis.Nomura economists were previously expecting the Fed to hike rates by 0.5 percentage points at its two-day meeting on March 21 and 22, but are now expecting a rate cut due to "looming financial stability risks," economists Aichi Amemiya and Jacob Meyer wrote in the report. US authorities moved swiftly to contain the fallout from the recent bank collapses by guaranteeing all deposits at <a href="https://www.businessinsider.com/us-government-bails-out-silicon-valley-bank-depositors-fdic-2023-3">Silicon Valley Bank</a> and <a href="https://www.businessinsider.com/signature-bank-shut-down-by-regulators-depositors-bailed-out-2023-3">Signature Bank,</a> New York. The Fed also announced the new <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm" target="_blank" rel="noopener noreferrer">Bank Term Funding Program</a> on Sunday, which offers one-year loans to banks that pledge collateral.But <a href="https://markets.businessinsider.com/news/stocks/silicon-valley-bank-svb-live-blog-fed-fdic-bailout-experts-2023-3#us-financial-stocks-tumble-8">US bank stocks</a> are still getting hammered."Judging by the market's reaction, financial markets seem to view these policy actions as insufficient, as stock prices for the US financial sector continue to decline as of this writing," the economists wrote. "One market concern is that a deposit flight might not slow anytime soon" due to various reasons, including concerns from corporate customers that they may not have access to their deposits — even temporarily.Even though a 0.25 percentage point rate cut is unlikely to be a "panacea" for banks, markets could quickly price in further rate cuts if the Fed signals lower rates in the future, the Nomura analysts wrote."This could somewhat reduce the risk of further bank runs, as well as reduce unrealized capital losses," they added. That's because bond prices and yields have an inverse relation, so when interest rates drop, prices bond prices tend to go up, which could alleviate losses. The Fed hiked interest rates eight times <a href="https://www.federalreserve.gov/monetarypolicy/openmarket.htm" target="_blank" rel="noopener">over the past year</a> to its targeted levels of <a href="https://www.newyorkfed.org/markets/reference-rates/effr" target="_blank" rel="noopener nofollow">4.5% to 4.75% now.</a> <h2>A growing chorus of experts tout a relaxation of the Fed's rate-hike cycle</h2>Nomura joins a growing chorus of experts who think the Fed could be forced to step back from its aggressive rate hikes.On Sunday, investment banking giant <a href="https://markets.businessinsider.com/news/stocks/svb-failure-goldman-sachs-fed-interest-rate-hike-march-powell-2023-3?_gl=1*1shooln*_ga*MTMwNjYzODQ5MS4xNjMzMzIwMTA2*_ga_E21CV80ZCZ*MTY3ODc3NjE2OS4yNjMyLjEuMTY3ODc4MjY4NS4wLjAuMA..">Goldman Sachs</a> said it doesn't expect the Fed to hike interest rates at its next meeting. The investment banking giant was previously expecting the US central bank to hike the rate by 0.25 percentage points.Top economist Mohamed El-Erian <a href="https://twitter.com/elerianm/status/1635164536042037249" target="_blank" rel="noopener nofollow">tweeted</a> on Monday that the Fed could be compelled to halt its rate hikes aimed at cooling inflation.Larry McDonald, the founder of "The Bear Traps Report" <a href="https://www.youtube.com/watch?v=cdSiIYBiGjI" target="_blank" rel="noopener nofollow">told CNBC</a> on Friday that the bank's meltdown could prompt the Fed to <a href="https://markets.businessinsider.com/news/stocks/silicon-valley-bank-crisis-fed-rate-cuts-bank-run-contagion-2023-3?utm_medium=ingest&amp;utm_source=markets" rel="">cut rates by 1 percentage point</a> by December to guard against contagion in the financial system.Overall, investors are starting to price in <a href="https://markets.businessinsider.com/news/stocks/svb-collapse-fed-rate-cuts-75-basis-points-bank-run-2023-3">Fed rate cuts of 0.75 percentage points</a> by December from the March peak, or a net decline of 50 basis points from current levels, according to the <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html" target="_blank" rel="noopener nofollow">CME FedWatch Tool.</a>

The Fed's been aggressively hiking rates over the past year. The banking crisis could force them to halt the hikes — or even cut them, analysts say.

<ul class="summary-list"><li>July's jobs report fell well short of expectations, prompting recession fears and a stock market sell-off.</li><li>Some have called for emergency interest rate cuts this week as a result.</li></ul>The US <a target="_blank" class="" href="https://www.businessinsider.com/markets-japan-rate-hike-yen-fx-carry-trade-stock-futures-2024-8">stock market</a> is plummeting. Investors are panicking, and they're calling for the nation's central bank to <a target="_blank" class="" href="https://www.businessinsider.com/fed-rate-cuts-recession-outlook-economy-job-market-interest-rates-2024-8">cut interest rates</a> over a month before the Fed's next meeting.Doing so would align today's economy with that of a pandemic and major terrorist events.On Friday, the Bureau of Labor Statistics released <a target="_blank" class="" href="https://www.businessinsider.com/unemployment-rate-job-growth-july-labor-market-economic-data-2024-7">July's jobs report</a>, which found that the unemployment rate rose to 4.3%, the highest reading in nearly three years. Job growth fell well short of expectations and <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-selloff-today-jobs-report-recession-unemployment-tech-earnings-2024-8?_gl=1*g3mnly*_ga*MTAyOTY4OTk4NC4xNzE0NDgyOTcz*_ga_E21CV80ZCZ*MTcyMjg2NzI3MC4yNTUuMS4xNzIyODY5OTQwLjU4LjAuMA..">sent stocks plunging</a> — with many pointing their fingers at the Federal Reserve for waiting too long to cut interest rates after <a target="_blank" class="" href="https://www.businessinsider.com/interest-rate-cuts-likely-september-federal-reserve-holds-steady-july-2024-7">holding steady</a> at its meeting last week.The fallout from the jobs report has continued over the past few days. The US stock market tanked on Monday, <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/nasdaq-crash-tech-recession-global-stock-market-rout-accelerates-japan-2024-8">with the Nasdaq and Dow Jones indices plunging</a>. Japan's main stock market index was <a target="_blank" class="" href="https://www.businessinsider.com/markets-japan-rate-hike-yen-fx-carry-trade-stock-futures-2024-8">down 12.4% </a>on Monday in response to both the US jobs report and Japan's latest interest-rate hike.The global panic has prompted some economists to call for the Federal Reserve to implement an emergency interest rate cut this week; Bloomberg <a target="_blank" class="" href="https://www.bnnbloomberg.ca/investing/2024/08/04/bond-traders-bet-big-on-the-fed-launching-into-rescue-mode/">reported</a> that traders were predicting a 60% chance of a rate cut within the next week. The Federal Open Market Committee is not expected to meet again until September 18, during which it's expected to cut interest rates after holding them steady for nearly a year.Wharton professor Jeremy Siegel <a target="_blank" class="" href="https://www.cnbc.com/2024/08/05/whartons-jeremy-siegel-says-fed-needs-to-make-an-emergency-rate-cut.html">told</a> CNBC on Monday that the Fed should make an emergency 75 basis-point cut this week and that there should be "another 75 basis point cut indicated for next month at the September meeting — and that's minimum.""How much have we moved the fed funds rate? Zero," Siegel said. "That makes absolutely no sense whatsoever."The Fed has not given any indication as to whether it will cut interest rates this week, but it's only done an emergency cut in extreme situations in the past — and it doesn't look like the US economy is quite there yet. However, with concerns that the Fed is <a target="_blank" class="" href="https://www.businessinsider.com/jobs-unemployment-interest-rates-economy-recession-soft-landing-2024-8">no longer able to achieve its soft landing</a> and avoid a recession, calls for relief will likely grow.<h2 id="36aa2446-dc65-482b-bd7d-7a46586b2aae">The history of emergency rate cuts</h2>Emergency interest rate cuts are extremely rare, and the Fed has done so sparingly in the past. There were a <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/emergency-rate-cuts-events-caused-past-fed-coronavirus-timeline-when-2020-3-1028964493#6-january-2001-tech-bubble-6">series of off-cycle interest rate cuts</a> in 2001 following the dot-com bust and later the September 11 terrorist attack, both of which crashed the stock market."In the past, the Federal Open Market Committee (FOMC) has responded to weaker economic conditions, which are often associated with downward pressure on the price level, with a lower federal funds target," the St. Louis Fed said of the 9/11 attacks in a January 2002 <a target="_blank" class="" href="https://www.stlouisfed.org/publications/regional-economist/january-2002/the-federal-reserves-response-to-the-sept-11-attacks">note</a>. "The present case has been no exception; the FOMC reduced the federal funds rate target four times in the three months following the attacks."Later in 2008, the Fed implemented emergency rate cuts following the housing market crash, and most recently <a target="_blank" class="" href="https://www.businessinsider.com/fed-interest-rate-cut-zero-bond-holdings-coronavirus-pandemic-economy-2020-3">cut rates off-cycle in March 2020</a> in response to the beginning of the COVID-19 pandemic.Still, among calls to cut rates this week, some experts are urging against an overreaction. Jim Smigiel, chief investment officer and financial services company SEI, said in a statement that "emergency Fed rate cuts being priced in makes little sense given the economic backdrop in the U.S. and would only serve to destroy policy maker credibility."If the Fed doesn't cut rates this week, there will likely be increased pressure on the central bank in September to cut rates more aggressively. Powell <a target="_blank" class="" href="https://www.businessinsider.com/interest-rate-cuts-likely-september-federal-reserve-holds-steady-july-2024-7">said during a press conference last week</a> that any decision will be made solely based on data, and he "can imagine a scenario in which there would be everywhere from zero cuts to several cuts, depending on the way the economy evolves."

You Searched For "US Fed rate cuts" and got 9 results

Sensex deepens on fear that US Fed may hike interest rates soon

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How many times will the Fed cut rates? Here's what Wall Street expects for the key stock-market driver in 2024.

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Here are the 4 most important things to know before today's Fed decision

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Both stock and bond markets are predicting rate cuts this year - but some industry watchers aren't sure the Fed should play ball

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US stocks edge higher as investors contemplate Fed rate-cut timing

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Bill Ackman says the US economy faces a real risk of a 'hard landing' if the Fed doesn't cut interest rates soon

Huileng Tan

Billionaire investor David Rubenstein says he doesn't think there'll be a recession in the next few quarters even amid the Fed's rate cut signal

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The Fed's been aggressively hiking rates over the past year. The banking crisis could force them to halt the hikes — or even cut them, analysts say.

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Cries are getting louder for emergency interest-rate cuts this week, something that's been reserved for pandemics or terrorist attacks

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