Sep 24 2024 19 mins 3
This week Escala Partners CIO, Tracey McNaughton, discusses how the US central bank overdelivered on interest rate cuts last week and why the Reserve Bank in Australia is under-delivering.
(0:54) The Fed over-delivered in its first rate cut in four years lowering interest rates by half a percent last week. Such a sizeable rate cut is normally associated with a crisis.
(4:27) It’s not just the US. Europe also cut rates this month.
(5:33) We had the Reserve Bank meeting today. Despite the Greens urging otherwise, they decided to keep interest rates unchanged at the 12-year high of 4.35%.
(7:47) Speaking of China, the economy received some much needed support from policy makers today but will it be sufficient do you think?
(12:16) Your mention of Japan is interesting there. Japanese companies are pulling back on spending in China.
(14:17) We are getting a lot of questions from clients on the US debt situation and just where and how it ends. A related question - is there any relationship between rapidly rising government debt and gold prices?
(17:27) The countdown to the US election is on – we are now 43 days out. How is the market positioning?
