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A financial expert and market analyst predicts that the Federal Reserve will be compelled to implement an emergency rate cut before its scheduled September meeting to mitigate the recent significant sell-off in equities. Robert Prechter, founder and president of Elliott Wave International, conveyed his concerns during an interview with Neil Cavuto on Fox Business, suggesting that the Federal Reserve missed a crucial opportunity at its previous meeting to address the ongoing market turmoil.
Prechter expressed his belief that an emergency rate cut is imminent due to the rapid decline in rates. The last time the Fed made such a move was during the early stages of the COVID-19 pandemic. However, many experts argue that another emergency cut could signal that the US economy is in dire straits, potentially exacerbating market anxieties.
In January, Prechter had warned that excessive optimism in the market posed a significant risk. He now asserts that this optimism has become deeply entrenched and that the world is witnessing the most inflated market in history.
Following the release of the July jobs report, which revealed a rise in unemployment to levels not seen since October 2021, global markets experienced a sharp downturn amid concerns that the US economy is faltering.
On Monday, the stock market continued to plummet, with the Nikkei 225 index in Tokyo, the world’s third-largest stock exchange, suffering its worst single-day decline in nearly four decades, plummeting by 12 percent. The S&P 500 dropped 3 percent, marking its most significant decline in nearly two years. The Dow Jones fell by 1,033 points, or 2.6 percent, while the Nasdaq composite slid 3.4 percent.
Bloomberg estimates that approximately $6.4 trillion has been erased from the value of global stock markets over the past three weeks.
According to Prechter, much of this could have been averted if the Federal Reserve had chosen to cut rates at its last meeting. He criticized the Fed for missing a crucial opportunity to lower the Fed funds rate by a quarter point.
Economists at Goldman Sachs have now increased the probability of the US entering a recession within the next year from 15 percent to 25 percent, while analysts at JP Morgan estimate a 50 percent likelihood.
Since March 2022, the Federal Reserve has been raising interest rates to combat inflation, but one prominent economist believes the agency is too focused on this single goal.
The chief economic advisor at Allianz, Mohamed El-Erian, has blamed the Fed for the current state of the market, arguing that the rate hikes are taking a heavy toll on the economy. He expressed concern that the US may lose its economic exceptionalism due to a policy mistake.
Even if the Fed waits until September to cut rates, most industry observers anticipate a rate cut is inevitable.
JP Morgan analysts have written a memo suggesting that the Fed appears to be significantly behind the curve and predicts a 50 basis point cut at the September meeting, followed by another 50 basis point cut in November.
Investors now expect that other major central banks will follow the Fed’s lead and aggressively ease rates, with the European Central Bank anticipated to cut rates by 67 basis points by Christmas.
The anticipated rate cuts by the Federal Reserve could have a positive impact on gold prices. This is because when interest rates are lowered, interest-bearing investments like bonds become less attractive, and investors often turn to gold as an alternative investment. Additionally, gold prices have historically risen when the Federal Reserve has cut interest rates.
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Controlling Protein Is One of the Globalists’ Primary Goals
Between the globalists, corporate interests, and our own government, the food supply is being targeted from multiple angles. It isn’t just silly regulations and misguided subsidies driving natural foods away. Bird flu, sabotaged food processing plants, mysterious deaths of entire cattle herds, arson attacks, and an incessant push to make climate change the primary consideration for all things are combining for a perfect storm to exacerbate the ongoing food crisis.
The primary target is protein. Specifically, they’re going after beef as the environmental boogeyman. They want us eating vegetable-based proteins, lab-grown meat, or even bugs instead of anything that walked the pastures of America. This is why we launched a long-term storage prepper beef company that provides high-quality food that’s shelf-stable for up to 25-years.
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Visit Prepper All-Naturals and use promo code “veterans25” to get 25% off plus free shipping on Ribeye, NY Strip, Tenderloin, and other high-quality cuts of beef. It’s cooked sous vide, then freeze dried and packaged with no other ingredients, just beef. Stock up for the long haul today.
