Analysis: Internal Fed Disputes May Be Clearly Reflected in Latest Meeting Minutes
BlockBeats News, October 8 — The Federal Reserve is gradually approaching a key point for another rate cut within the year, and the minutes to be released in the early morning of Thursday (Beijing time) are expected to reveal most officials' decision-making logic regarding future rate cuts. Last month's economic forecast showed that 10 Federal Reserve officials supported two more rate cuts this year, while another 9 officials preferred only one cut or to keep rates unchanged.
These minutes will help the market clarify the specific focus and severity of disagreements among officials. Samuel Tombs, Chief U.S. Analyst at Pantheon Macroeconomics, stated, "We expect the minutes to reveal significant divisions, but these views have already been reflected in the public speeches of various officials over the past three weeks."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Is the “AI bank run” coming? Apollo warns: AI assistants may drain banks' cheap deposits, which will pose risks to the financial system
Torsten Slok, Chief Economist at Apollo Global Management, stated that if consumers begin to heavily rely on AI assistants such as Muse under Meta and transfer cash to higher-yielding accounts, it could pose risks to the financial system.
CNY: How to resolve the dilemma between bulls and bears?
Rare in 25 years! The 10-year U.S. Treasury yield surpasses the S&P 500 earnings yield
The 10-year US Treasury yield has surpassed 5%, making bonds more attractive relative to stocks than at any point in the past 25 years. The earnings yield of stocks, as measured by the inverse of the S&P 500’s price-to-earnings ratio, is now lower than the 10-year US Treasury yield, resulting in a clear yield suppression effect on the stock market from bonds. According to the Shiller model, the S&P 500 may outperform bonds by only about 1% annually over the next decade. The 20-year paradigm of stocks outperforming bonds has officially come to an end.
