The Federal Reserve has even further information on the health of the US economy as GDP (gross domestic product) for the second quarter was revised higher from 2.8% to 3%, showing the economy is growing at a steady pace. Does this new information give the Fed even more confidence to cut interest rates in September? Wall Street and markets (^DJI, ^IXIC, ^GSPC) have already begun pricing in the extent of rate cuts in the remainder of 2024. Citi senior global economist Robert Sockin joins the Morning Brief team in-studio to talk about rate cut expectations and how much the central bank could afford to ease rates. "It’s still concerning how much the unemployment rate has moved up. And so from a risk management perspective, that might lead the Fed to be a bit more aggressive in its initial moves, especially if they think there’s a high risk that the economy is slowing down sharply," Sockin explains. "Our US team is looking for them to start off with 50 basis points and another 50 after that.
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