Danielle DiMartino Booth, CEO and chief strategist at QI Research, returns to Forward Guidance to share her thoughts on May 3rd’s Federal Reserve’s meeting of the Federal Open Market Committee (FOMC) as well as the ongoing issues at several regional U.S. banks. Here is a direct video link.
Danielle was a guest with Jim Goddard on Talk Digital Network, talking about recent developments in the world economy and markets. You can listen to an audio link of the segment here.
Though Chair Powell said he expects they will make no rate cuts in 2023, the futures market expects cuts to start this summer with 220 bps by the end of 2024 (as shown below). We shall see. The average recession historically has seen the central bank ease by 350 bps.
Will spreading strife in banks prompt the US Fed to pause its tightening efforts this month? We will soon find out. Some worthwhile insights in this segment…
We’ve had the 2nd, 3rd, and 4th largest bank failures in American history in the last two months, notes Jim Bianco. He discusses what collapse of First Republic Bank (FRC) means for the overall banking systems. He highlights that all of the movement in the economy is pointing to a slowdown. He goes over how the banking system is very complicated, so the market has a habit of misunderstanding and misjudging the banks. He also notes that futures are muted Monday ahead of this week’s FOMC meeting. he highlights that he thinks Powell is leaving the door open to hike and will hike again. Here is a direct video link.
Cory’s Chart Corner
