Marc Lasry, Avenue Capital CEO, joins ‘Closing Bell’ to discuss the Fed’s next move, recession likelihood and the bank lending….(read more)
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Avenue Capital CEO Marc Lasry recently spoke about the possibility of the US Federal Reserve cutting interest rates within the next six months due to increasing fears of an impending recession. In an interview with CNBC, Lasry explained that despite strong economic indicators, such as low unemployment and stable inflation rates, global events such as Brexit and ongoing trade tensions between the US and China are causing uncertainty and volatility in the markets.
Lasry’s comments come on the heels of a number of other high-profile figures predicting a potential economic downturn. Billionaire investor and hedge fund manager Ray Dalio recently warned that the US is “one or two years away from a downturn,” while others, such as former Federal Reserve Chair Janet Yellen, have acknowledged that the chances of a recession have increased.
So what would a rate cut by the Fed mean for the economy? Essentially, lower rates make it cheaper for businesses and individuals to borrow money, which can stimulate spending and investment. This increase in activity can in turn boost economic growth. However, rate cuts can also lead to inflation and weaken the value of the US dollar.
The Fed last cut interest rates in 2008 during the global financial crisis, and has been steadily increasing rates since 2015. However, recent events and market volatility have caused many to speculate that the current period of economic growth may be coming to an end.
While the timing and severity of a potential recession is still uncertain, it’s clear that investors and experts alike are closely monitoring economic indicators and are bracing for a significant shift in the markets. As Lasry notes, “People are starting to realize that we’re in an uncertain environment, and that it’s going to be very tough to [predict] what happens.”
Whether or not the Fed ultimately decides to cut interest rates within the next six months, it’s important for individuals and businesses to stay informed and prepared for potential economic changes in the near future.
You will see one more rate hike at 0.25% and they will keep it at this level at least one year. The main goal is to drop down the inflation to 2% level. Inflation is higher priority over recession. 6 months time line for interest rate cut is not realistic. J. Powell mentioned many times. We do whatever it takes to drop the inflation to 2%.
Bipan Rai, the North America director of FX strategy at CIBC Capital Markets, expresses a rising apprehension that recent data suggests the Federal Reserve might be slightly lagging in their response compared to their initial expectations for this year. My portfolio is witnessing more losses than gains. I'm curious about how other individuals in this market are achieving gains of over $350,000 within a brief timeframe.
The fed will make it so the economy will start booming again and stock market rising by mid 2024 to help Sleepy Joe to be re-elected. But I hope they are not successful!
COVID supply shocks are in the past, but labour shortages are not. That will keep construction prices up. Unemployment is basically 0%, so building a house or apartment, eating at a restaurant is expensive.
Gentleman trying to talk up the market
I’m tired of this recession talk. The economy is resilient. I see a soft landing
SOXX Market says the Debt Deal is already Done and it's a good one for AI.
What watch is he wearing?
Reasonable guess. We have 100's of talking heads putting in their guesses and covering every day from tomorrow to 5 years out. When the Fed does cut the "news" shows will look back to find those who guessed right to present them as "knowing the future". Silly time filling content.
Feds will cut because recession "FEAR" is increasing?…. Feds will cut when ** hits the fan
Federal Reserve may soon lose control of interest rates, claims Heresy Financial. This comes as a result of the United States government's intention to embark on a $1 trillion borrowing spree. This might cause the banking sector to lose so much liquidity that rates spiral out of control and are no longer in the control by the federal reserve. I'm sorry to say that despite investing, I lack the mental capacity to evaluate each company's performance and decide whether or not now is a good moment to acquire stocks. My reserve of $650K is being wiped out by inflation and the recession. Sincerely, I have no idea what to do.
The FED should not cut rates for at least the next 18 months. Hopefully, this guy is wrong
This guy is out of touch.
Wait until student loan repayment start and 4-6 bil a month is taken out of the economy Game over.
Who is this know it all clown?
It will be still an economic slowdown regardless of what the feds do.
Could not agree more. Either rates will go back to zero or close to it or the economy of the whole Western world will crash.
This guys accent is super hard to understand.
When he said the fed was gonna have to raise again in 6 months, i swear it sounded like he said fed was gonna cut rates.
The moral of the story of "marking my words", is that no one knows wtf the future holds even if they're rich. Your best guesses are as good as the wealthy and you alone own your own investment results.
Like Powell said, major pain for the average Joe is coming. Rates not coming down anytime soon.
This fella is hoping and praying for the return of the punchbowl.
There will not be a rate cut this year. We are in a hard pump and dump stock cycle. Don’t be surprised if the fed raises in June
Keep dreaming… Hope you are not betting your client's farm on it
The Fed doesn't mind if there is a recession, they have repeatedly said or hinted that they would prefer a recession if it would help lower inflation. People are really dumb thinking the fed's job is to prop up stock market values
The Great Carnac over here…