Vanguard predicts a 25 bp Fed rate cut in September due to high shelter costs and strong job market.

Vanguard predicts the Federal Reserve will only cut interest rates by 25 basis-points once this year, in September, due to high shelter costs and a strong job market. This is less than the more ambitious rate cut scenarios expected by investors this year. The Federal Reserve's cautious approach is driven by resilient US consumer demand and easing inflation, with economists now expecting just two cuts this year.

July 23, 2024
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