US: The outlook is improving, but some risks remain – National Bank of Canada

Source Fxstreet

Recent weeks have been punctuated by a number of positive developments for the U.S. economy, the first of which was the significant upward revision to historical data on household disposable income. However, this was partially offset by weaker recent momentum, NBC’s Jocelyn Paquet notes.

Fed to continue cutting its key rate at a gradual pace

“In reality, however, the future path of household income will depend first and foremost on the evolution of the labour market. Which brings us to the second piece of good news of recent weeks: September's solid employment figures.”

“As for the third piece of good news, the Federal Reserve has not only decided to begin its cycle of monetary easing with a jumbo 50 basis point cut, but has also underlined its willingness to cut benchmark rates further in the months ahead, if the latest edition of its dot plot is anything to go by.”

“Assuming that inflation remains under control and that the U.S. elections do not cause too much disruption, we expect the Fed to continue cutting its key rate at a gradual pace over the coming months. This will probably not prevent growth from slowing significantly by the middle of next year, although we do not expect the economy to contract. Following this scenario, we anticipate growth of 2.6% and 1.2% in 2024 and 2025, respectively. This is better than the figures of 2.5% and 0.9% we presented last month.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Crude Oil Price Forecast: Can Brent Hold $100 Amid Hawkish Fed Rate Hikes and Easing Supply Concerns? International oil prices continued to fall after the Federal Reserve resumed rate hikes in September. On Wednesday, WTI crude dropped 3.28% to settle at $102.02 per barrel; Brent crude fe
Author  TradingKey
6 hours ago
International oil prices continued to fall after the Federal Reserve resumed rate hikes in September. On Wednesday, WTI crude dropped 3.28% to settle at $102.02 per barrel; Brent crude fe
placeholder
Dow drops 631 points as the Fed hikes — but futures are rebounding: what's next for US stocks?The Dow fell 631 points and the S&P 500 closed below 7,600 after the Fed hiked rates for the first time since 2023, with the dot plot showing 16 of 18 officials expect more tightening. Asia-session futures are already recovering — here are the levels and analyst views that decide whether 7,500 holds.
Author  Irene Q.
13 hours ago
The Dow fell 631 points and the S&P 500 closed below 7,600 after the Fed hiked rates for the first time since 2023, with the dot plot showing 16 of 18 officials expect more tightening. Asia-session futures are already recovering — here are the levels and analyst views that decide whether 7,500 holds.
placeholder
Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks inThe U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
Author  Irene Q.
13 hours ago
The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.
placeholder
TradingKey Daily Market Briefing: Fed Raises Rates by 25 Bps, May Hike Again This Year; Gold Tumbles as Intel Rises 4%On September 16, Eastern Time, US stocks rose before pulling back following the Federal Reserve's rate decision announcement for September. The Fed unanimously decid
Author  TradingKey
14 hours ago
On September 16, Eastern Time, US stocks rose before pulling back following the Federal Reserve's rate decision announcement for September. The Fed unanimously decid
placeholder
September Fed Rate Decision Preview: Is a Rate Hike a Foregone Conclusion? US Stocks, Dollar, and Gold Face a Critical TestThe Federal Reserve will announce its September interest rate decision at 2:00 p.m. ET on Wednesday (September 16), followed by a press conference held by Fed Chair Kevin Warsh at 2:30 p.
Author  TradingKey
Yesterday 10: 14
The Federal Reserve will announce its September interest rate decision at 2:00 p.m. ET on Wednesday (September 16), followed by a press conference held by Fed Chair Kevin Warsh at 2:30 p.
goTop
quote