Dalio: The Fed is unlikely to make “significant cuts in rates”

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Dalio: The Fed is unlikely to make “significant cuts in rates” The market is likely to remain volatile until we get the next inflation reading and the next batch of earnings reports. Wall Street experts have been sharing their opinions after the recent jobs report. Billionaire investor Ray Dalio doesn’t believe the Fed will make “significant cuts in rates” after going for a jumbo-sized cut. Why? “The economy right now is in relatively good balance,” Dalio said. Ray Dalio (Source: TED) Indeed, there are few reasons for the Fed to cut rates based on the current data. The central bank would love for the economy to remain the way it is now, but the question is whether it can maintain its current level. Fed officials are worried that the labor market could deteriorate. The recent jobs report squashed the short-term concern, but Wall Street will still keep an eye on it over the next few months. Mark Haefele at UBS Global Wealth Management said the US economy doesn’t look strong enough that the Fed wouldn’t cut rates further and still sees more rate cuts ahead. - “The US data is not so strong that the Federal Reserve’s contribution to the global rate-cutting cycle looks set to end,” said Mark Haefele at UBS Global Wealth Management. “We therefore maintain our conviction for investors to position for lower rates.” The bond market indicates that traders believe the Fed will make fewer rate cuts than previous expected, as yields have risen lately. Higher yields could lead to lower stock prices because investors will demand more risk premium from stocks if bond yields are higher. Michael Landsberg, however, thinks bond yields still have a room to rise before it begins to affect stocks negatively. - “Yields will likely stay range bound and even if they rise from here, they have plenty of upside room before rising yields start to negatively affect stock prices,” said Michael Landsberg at Landsberg Bennett Private Wealth Management. Michael Landsberg at Landsberg Bennett Private Wealth Management (Photo: CNBC) Federal Reserve Bank of Atlanta President Raphael Bostic said he would be open to another jumbo-sized cut if the labor market weakened faster than expected, but he added that the central bank has “the luxury of being a bit more patient” if the labor market remains robust. While the Federal Reserve seemed ready to move on from inflation, we will get another inflation reading tomorrow. It is a wild card. If it comes in hotter than expected, Wall Street might become worried about stagflation since the red-hot jobs market might have indicated a heating-up economy. You May Have Bought This Product Before, And The Stock Looks Like A Potential Winner Today’s Stock Pick: BellRing Brands, Inc. (BRBR) BellRing is a simple business with two powerful, growing brands that is disrupting the convenient nutrition category — Premier Protein and Dymatize. (Source: BellRing Brands) You may have recognized these products on store shelves. Hydrolyzed whey is becoming a popular alternative to whey concentrates and isolates. Basically, it broke down protein into smaller peptide units, leading to faster, easier digestion. Many people who suffer from digestive issues from whey shakes said hydrolyzed is a game-changer. Premier Protein powder’s consumption growth jumped 44% in Q2 2024 and reached new household penetration highs. This is a powerful evidence that consumers love Premier Protein. 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