Research & Analysis

Navigating the Fed's Rate Cuts: A Soft Landing or Hard Times Ahead?

2024-09-29
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✅🌟 Markets celebrated the Fed's recent 50bp rate cut, backing the "soft landing" narrative for now. 🛬💸 While optimism is high, we can't ignore the potential for underestimated hard-landing risks.

✅History tells us that USD initially rallies amid shocks but tends to depreciate with sustained rate cuts. 📉💼 Risk assets point to a soft landing, with high-beta FX leading gains.

✅However, keep an eye on labor market signals and be ready to adapt to changing tides. 🌊📊 For now, USD seems ruled by a "sell-the-rally" mindset

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