Will Powell Shock Markets With A July Rate Cut? Why One Bank Says 'Yes'

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by Tyler Durden
Wednesday, Jul 03, 2024 - 09:45 AM

Biden's penchant to manipulate economic data in hopes that making it appear much stronger than it is would earn him a few extra votes, has made a total nightmare of analyzing, well... pretty much anything. But we are now at the tipping point where any incremental data fabrications become as obvious as Biden's dementia which not even the White House press corps can hope to hide any more: just ask California.  And so, despite the desperate push to avoid exposing the true state of economic affairs by Biden's puppetmasters, the wheels are starting to come off which means that the last shred of credibility the Fed has left will hinge on what - and when - it cuts if it hopes to glide the economy into if not a soft landing, which is impossible, then at least a non-catastrophic hard one.

Which is why, according to TS Lombard chief economist Steven Blitz, we are now just days away from what would be the biggest market shock of the year: a July rate cut announcement.

In his latest note, Blitz writes that "the economy is probably the least important item on the minds of Americans these days, and the Fed’s aim is to keep it that way." And while the economist is catastrophically dead wrong on the former...