Bloomberg Businessweek Fed Expected to Announce Quarter-Point Rate Cut on Wednesday
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Dec 17, 2024 Steven Skancke, Chief Economic Advisor at Keel Point, shares valuable insights on the Federal Reserve's anticipated rate cut, discussing its potential impacts on inflation and employment stability. Patrick Sullivan, CEO of EV Realty, highlights the benefits of transitioning fleet operators to medium and heavy-duty electric vehicles, emphasizing the importance of large-scale EV charging infrastructure. The conversation also touches on the challenges facing the energy grid and the need for innovation in the electric vehicle sector amidst rising electricity demands.
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Fed Rate Cut Expectations
- The Federal Reserve is expected to cut interest rates, aligning with market expectations and economic data.
- The data suggests a positive retail sales trend and moderate industrial production, giving the Fed more room to cut.
Reason for Potential Rate Cut
- Despite economic growth, the Fed might cut rates due to concerns about rising unemployment.
- They prioritize preventing job losses over addressing inflation, which appears to be declining.
Policy Concerns and Fed Actions
- Concerns exist regarding inflationary pressures from potential Trump administration policies.
- The Fed's reluctance to not cut rates might stem from avoiding the appearance of preempting policy outcomes.