The opinion of other economists is starting to swing. Here’s an example of a former New York Fed President who is calling for a rate drop right now, in the Fed’s next meeting. His opinion is expressed clearly and concisely: “The facts have changed, so I’ve changed my mind.” He feels that continued high rates will push us into recession, which would be tough to swallow after two years of slow sales in real estate.
To see what the futures market is predicting, check out the very helpful CME FedWatch tool here. Currently, the market sees only a 4.1% chance of a rate cut tomorrow (July 31st) but a 98% chance of a rate cut in September.
Source:Â Dudley, B. (2024, July 24). I Changed My Mind. The Fed Needs to Cut Rates Now. Bloomberg.com.
