Will US rate cuts boost commodities demand? Anurag Singh answers
«There is nothing which signals a slowdown. All leading indicators just say that it is just back to getting normal. The other point Federal Reserve has to keep in mind is, what is the runway they have? Look, they started from zero percent and which was anyway a very abnormal emergency measure,» says Anurag Singh, Managing Partner, Ansid Capital.
At Jackson Hole, we heard the Fed chair, Jerome Powell, saying that the time has come for policy to adjust. The direction of travel is clear, he said, and the timing and pace of rate cuts is going to depend on incoming data. The evolving outlook, the balance of risks and he also said that it seems unlikely that the labour market is going to be a source of elevated inflationary pressures any time soon. We do not seek, he says, or welcome further cooling in the labour market conditions. But looking at the labour data now with some pockets in the market supporting this 25 basis point rate cut in September, November, and December, what is your sense of the size and pace of rate cuts that the Fed will go with?
Anurag Singh: First of all, there is no panic in the economy anyways. So, there is no point, markets can behave and do what they do. But the economy overall is just getting back to normal. I mean, you see all the unemployment rate, quits rate, hiring rate, ratio of unemployed to jobs those kind of numbers are just about getting back to where they were in 2019 or 2020, just before the pandemic started.
So, I think it is all very good news. But there is nothing which signals
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