8/26/2024
By Charles Payne CEO & Principal Analyst

Now, the Street is modeling 200-basis points (bps) in cuts over the next year. There is a lot of room to cut, and I think rates will settle at 3.0%, but there is a lot of time, data, and other factors down the road..

On that note, I sincerely hope it begins with a 50-bps cut, and here is why.

When Powell & Co. embarked on the rate hiking cycle, it was built up as a big deal and felt like an overdue emergency. But Powell began with a 25-bps hike and talked about inflation being transitory. It was clear after a while that higher prices would not be the cure for higher prices, and even the most liberal interpretation of the word “transitory” could no longer be applied. The next rate hike was 50-bps, then a series of 75-bps rate hikes. 

This new aggressive shift should have occurred at the start of the cycle.

To read the full report, contact your account representative or email Info@wstreet.com.

Charles Payne
Wall Street Strategies

Add a Comment!