Title: Expert Predicts September Rate Cut as CPI Report Indicates Monetary Policy Easing
Former Federal Reserve Governor Larry Meyer confidently predicts a September rate cut based on the upcoming CPI report. According to Meyer, the report would have to be very poor to even raise questions about the Fed’s decision to ease monetary policy.
In a note to clients, Meyer stated that a September rate cut now looks extremely likely. However, the real uncertainty lies in what will happen after September, as highlighted in his research note.
Chief economist Lou Crandall from Wrightson ICAP also weighed in, suggesting that while the July CPI data may not be as strong as the previous month, it will still be “good enough” for the Fed. This indicates that the Fed is likely to proceed with its plans for monetary easing.
Analysis:
Based on the expert opinions of Larry Meyer and Lou Crandall, it is highly probable that the Federal Reserve will implement a rate cut in September. This decision could have significant implications for the financial markets and the overall economy. Investors should closely monitor the CPI report and be prepared for potential changes in monetary policy that could impact their investments and financial strategies.