Will See a Fed Rate Cut in October, Says Oxford Economics’s Hunter

The transcript discusses the Federal Reserve's internal dissent regarding rate cuts, with some members advocating for preemptive measures to counteract economic risks from trade wars and manufacturing slowdowns. The impact of rate cuts on equity prices and the housing market is examined, highlighting the mixed effects on economic growth. The Fed's strategy, led by Jay Powell, aims to prevent a recession by acting ahead of visible economic damage. Predictions include two more rate cuts within the year, driven by preemptive motivations to mitigate potential spillovers into the broader economy.

What is the main concern of the hawkish members of the Federal Reserve?

• High inflation rates

• Low unemployment rates

• Rising housing prices

• Increasing trade deficits

How do rate cuts potentially affect the housing market?

• They increase mortgage rates

• They decrease housing demand

• They stimulate housing construction

• They reduce employment in construction

What is a potential downside of rate cuts mentioned in the second section?

• Decreased consumer spending

• Boosted equity prices

• Higher unemployment

• Increased inflation

What is Esther George's stance on rate cuts?

• She supports frequent rate cuts

• She opposes rate cuts unless there's a broad economic slowdown

• She believes rate cuts are unnecessary

• She advocates for immediate rate hikes

Why does Jay Powell support preemptive rate cuts?

• To increase inflation rates

• To reduce government debt

• To counteract potential economic spillovers

• To boost stock market prices