Unthought Known Path of Rate Cuts with Luke Gromen
September 20, 2024
Dan Nathan and Danny Moses discuss the ongoing bull market, with insights into the S&P 500's new highs and the NASDAQ's performance. They delve into the implications of the Fed's recent interest rate cut, Chair Jerome Powell’s press conference, its impact on the economy, and the potential for more rate cuts amidst discussions of a soft landing. The episode covers the recent trends in tech stocks, banks' performance, and market strategies as hedge funds recalibrate their positions.
Guy Adami and Danny Moses welcome back Luke Gromen of FFTT, LLC to discuss his bullish stance on equities despite the Federal Reserve's recent interest rate decision and its implications for the market. Luke explains the mechanics of rising interest expenses for the U.S. government, the impact of Federal Reserve policies, and the current state of the Treasury market. They delve into historical precedents for 50 basis point cuts and their effects on the markets, current fiscal deficits, and the broader economic outlook. Additionally, Luke predicts the performance of gold and Bitcoin, emphasizing their roles in the face of weakening dollar dynamics, and potential future market scenarios. The discussion also touches on the sustainability of the fiscal deficit's impact on GDP, the demographic influences on the economy, and potential risks from future political and fiscal decisions.
