Monday's Market Turmoil Raises Recession Fears. How Will That Impact the Fed's Rate Decision in September?

Benzinga

2 months ago

Monday's market turmoil has heightened recession risks and potential financial instability. Despite this, the Federal Reserve will unlikely deviate from its planned rate cut next month unless conditions worsen significantly. With the Fed meeting set for September, officials may consider a larger cut if recent weak employment data indicates a troubling trend. An emergency rate cut between meetings remains rare and reserved for severe market disruptions. Fed Chair Jerome Powell hinted at a quarter-point cut, but evolving economic conditions could influence future decisions. Recent market selloffs are attributed to technical factors rather than fundamental economic weaknesses.

Category

Transcript

Display full video transcript

00:00It's Benzinga and here's what's on the block.

00:02Monday's market turmoil has heightened recession risks and potential financial instability.

00:07Despite this, the Federal Reserve is unlikely to deviate from its planned rate cut next month

00:12unless conditions worsen significantly. With the Fed meeting set for September,

00:16officials may consider a larger cut if recent week employment data indicates a troubling trend.

00:21An emergency rate cut between meetings remains rare and reserved for severe market disruptions.

00:26Fed Chair Jerome Powell hinted at a quarter-point cut, but evolving economic conditions could

00:31influence future decisions. Recent market sell-offs are attributed to technical factors

00:36rather than fundamental economic weakness. For all things money, visit Benzinga.com.

Recommended

SHOCKING: Khalistani Leader Pannun Exposes SFJ’s Links to Trudeau’s Office in CBC Interview| Watch

ASML Shares Drop 16% After Releasing Weak Sales Forecast

Venture Capital Funding For Generative AI Startups Account For 40% Of All Cloud Funding

GM Partners With Lithium Americas In $625 Million Joint Venture To Develop Nevada Lithium Mine

Harris Proposes Medicare Funding for At-Home Care As Costs Outpace Inflation, Weighing On Families

Wells Fargo CEO Says US Consumer 'Extremely Resilient,' Sees Consumer Spending Rising Steadily

Amazon Web Services Invests $500 Million In Small Modular Nuclear Reactor To Power AI

Morgan Stanley Beats Q3 Estimates, Profits Surge More Than 30%

U.S. Crude Oil Prices Slip Below $71 on Middle East Tensions Easing

Powell’s Recalibration Buzzword Marks New Fed Policy Direction as Fed Makes 50 Basis Point Rate Cut to Adjust Policy

Niaga AWANI: Economist Consensus: U.S. Federal Reserve to Cut Interest Rates in June

Fed Chair Powell: Rate Cut in March "Not Likely" Based on Today's Meeting

Fed Chair Jerome Powell Hints at Possible Interest Rate Cut in September

Fed Expected to Keep Interest Rates High as Optimism Remains High for September Rate Cuts

The Kutch Story |Emami Agrotech Bleeds | Toxic Fumes Kill 5 Workers | WATCH

Watch| India's Supreme Court Unveils New Statue of Justice: Open Eyes and Constitution in Hand

Economist Pours Cold Water On September Rate Cut: 'We Need To See Some Sustained Weakness'

Fed Minutes Show Divisions on Aggressive Rate Cuts. Treasury Yields Surge On Fed Action

Fed Chair Jerome Powell Remains Unfazed by Economic Worries Despite Calls to Act Immediately on Rate Cuts

Citi Economist Predicts 'Hard Landing' for U.S. Economy, Expects Four Rate Cuts

Jerome Powell: 'Time Has Come' For Interest Rate Cuts, Cooling In Labor Market 'Unmistakable'

Druckenmiller Wary of Fed's Overdoing Rate Cuts After Jobs Data. Payrolls Increase, Lower Unemployment Shift Fed Expectations.

Stock Market Sell-Off: Correction or Sign of Economic Trouble? Economists Urge Caution as Stock Markets Drop But Recession Fears Premature

Federal Reserve Poised to Announce Latest Interest Rate Hikes Despite Slowing Inflation

Wibbitz Top Stories

Janet Yellen Predicts 'Soft Landing' For US Economy Despite Job Growth Concerns: 'We're Not Seeing Meaningful Layoffs'