Fed needs emergency rate cut now to quell global market meltdown

The Federal Reserve needs to cut US interest rates by 25 basis points as global markets panic over the deteriorating state of the American economy.
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This is the stark observation from Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organizations, ahead of the US central bank recalling its officials for an emergency event on Monday following a historic correction in Japan’s stock markets.
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He says: “The Federal Reserve needs to start easing monetary policy more aggressively than had been anticipated, in order to head off a looming recession in the world’s largest economy.
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“The Fed was behind the curve at the beginning of the cycle, it cannot afford to be behind the curve this time too.
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“The US central bank needs to take action now, and start to bring down rates from a more than two-decade high, or there could be legitimate and far-reaching risks of a hard landing.”
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The deVere CEO continues: “We hope the Fed will announce an emergency cut of 25 basis points this week, and another in September, to quell speculation and the growing sense of panic.”
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This panic is driving one of the biggest bond-market rallies since concerns of a banking crisis hit in March 2023.
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Global stocks are plunging. Japan’s benchmark Nikkei averaged 12.4% lower at 31,458.42, its largest one-day fall since October 1987, while the broader Topix lost 12.48% to 2,220.91.
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European shares also fell to near six-month lows The pan-European STOXX 600 index was down 2.6% at 487.15 points. The UK’s FTSE 100 has suffered its worst drop in more than a year.
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“The Federal Reserve must move to cut interest rates already, especially in the light of a weak jobs report on Friday that’s been driving concerns further about an economic slowdown,” says Nigel Green.
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He concludes: “It would be beyond negligent for the Federal Reserve not to announce an emergency interest rate cut in response to the global rout in stock markets.”

About deVere Group

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of offices around the world, more than 80,000 clients, and $12bn under advisement.