Federal Reserve Chair Jerome Powell is scheduled to speak on Monday amid growing concerns among economists about potential policy mistakes and 2024 election risks.
What Happened:
The National Association for Business Economics (NABE) released a survey on Sunday revealing that 39% of 32 professional forecasters consider a “monetary policy mistake” as the greatest threat to the U.S. economy over the next year.
This concern surpasses the 23% who view the upcoming U.S. presidential election and the same percentage who worry about escalating conflicts in Ukraine and the Middle East as significant risks.
Powell is expected to elaborate on the Federal Reserve’s recent decision to cut its benchmark interest rate by 50 basis points during the Sep. 17-18 meeting. He will also discuss the framework for anticipated reductions in borrowing costs through the remainder of this year and into 2025.
NABE President Ellen Zentner said, “More than half of the NABE Outlook Survey panelists believe the risks to their forecasts over the next 12 months are weighted to the downside.” The survey also indicated that panelists have revised their economic growth forecasts higher for 2024 but lowered them for 2025.
Powell’s address is scheduled for 12:55 p.m. CDT in Nashville, Tennessee.
Why It Matters:
The Federal Reserve’s recent interest rate cuts have been a focal point for both economists and investors. On Sept. 21, the Fed’s half-point rate cut triggered a market rally. This move was seen as a positive signal for U.S. stocks and commodities, reducing bond market volatility.
The subsequent Benzinga poll on Sep. 25 indicated that the rate cuts could benefit small-cap stocks, making loans cheaper for companies needing capital for growth.
Additionally, the Personal Consumption Expenditures Price Index report on Friday showed lower-than-expected inflation, strengthening confidence in the Fed’s decision to cut rates. This report is crucial as the PCE is the Fed’s preferred inflation gauge and could influence future rate cuts.
—
Originally Posted September 30, 2024 – Fed Chair Jerome Powell Set To Speak As Economists Raise Concerns Over Risks Arising From Potential Policy Missteps And 2024 Election
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Disclosure: Benzinga
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Disclosure: Bonds
As with all investments, your capital is at risk.
