Investors’ eyes are on the Jackson Hole Economic Forum this week, where the Federal Reserve Chairman Jerome Powell is scheduled to deliver a highly anticipated speech on Friday, amid growing expectations that an interest rate cut could be announced at the next meeting in September.
US labor data released recently showed weaker growth than previously estimated, while inflation indicators began to decelerate at a faster pace than expected, reinforcing market conviction that the Fed is forced to ease its tight monetary policy.
According to data from the Atlanta Federal Reserve, markets currently price in a 65% chance of a 25-basis point cut in September, and a 15% chance of a 50-bps cut.
Analysts told Argaam that the market will benefit significantly from the interest rate cut, adding that the impact will vary from sector to sector, with the sectors that will benefit most include banks that focus on consumer finance, as well as the real estate and petrochemicals sectors.
Investors’ eyes are on the Jackson Hole Economic Forum this week, where the Federal Reserve Chairman Jerome Powell is scheduled to deliver a highly anticipated speech on Friday, amid growing expectations that an interest rate cut could be announced at the next meeting in September.
US labor data released recently showed weaker growth than previously estimated, while inflation indicators began to decelerate at a faster pace than expected, reinforcing market conviction that the Fed is forced to ease its tight monetary policy.
According to data from the Atlanta Federal Reserve, markets currently price in a 65% chance of a 25-basis point cut in September, and a 15% chance of a 50-bps cut.
Analysts told Argaam that the market will benefit significantly from the interest rate cut, adding that the impact will vary from sector to sector, with the sectors that will benefit most include banks that focus on consumer finance, as well as the real estate and petrochemicals sectors.
