US labour data justifies 50 bps rate cut, but Fed may wait, says Milken Institute economist

William Lee of the Milken Institute argues that while the US Federal Reserve is likely to pause, the slowing labour market justifies a 50 basis point rate cut. He dismisses the AI bubble debate, focusing instead on the crucial question of future cash flow from end-users. Lee points to a weakening US consumer and a ‘K-shaped’ economy, where wealth gains are concentrated at the top.

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