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Markets are counting on the Fed to head off recession with sizeable interest rate cuts

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Summary
Nutrition label

74% Informative

In the market's eyes, the Fed finds itself either poised to head off recession or doomed to repeat the mistakes of its recent past.

Traders are pricing in a half-point September cut, followed by aggressive easing that could lop 2.25 percentage points off the Fed 's short-term borrowing rate by the end of next year .

How the Fed reacts likely will go a long way in determining how investors negotiate such a turbulent climate.

The Fed has plenty of room to cut 5.25 percentage points if necessary.

Still, any quakes in the data could ignite recession talk quickly.

"The Fed is as behind the economic curve now as it was behind the inflation curve back in 2021-2022 ," David Rosenberg says.

VR Score

85

Informative language

89

Neutral language

55

Article tone

formal

Language

English

Language complexity

49

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

short-lived

External references

no external sources

Source diversity

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