The market shouldn't cheer a larger rate cut in September

Published On Sep 5, 2024, 6:00 AM

The article discusses the implications of a potential large rate cut by the Federal Reserve in September, suggesting that while lower rates could be seen as beneficial for the market, they may also indicate underlying economic weakness. Recent job data has shown a decline in job openings and an increase in unemployment rates, raising concerns about the labor market. Analysts warn that a rate cut of half a percentage point could signal that the Fed is more concerned about recession risks than about controlling inflation, which could lead to a market sell-off rather than a sustained rally.