News Bites
We're Already in a Recession and Rate Cut Won't Help
(Kitco News) - The Federal Reserve is expected to cut rates for the first time since 2008 at this week’s meeting but is likely to pause the rate cut cycle after that, this according to Peter Boockvar, CIO of Bleakley Advisory Group.
“It’s usually not just one cut, it’s usually the beginning of a rate cutting cycle, and they’re hoping for more, but I don’t think the Fed is initially going to give the market any tilt in that direction just yet,” Boockvar told Kitco News.
Boockvar said that he agrees with the Fed on cutting rates now, but concedes that it’s still not enough to alleviate us from a recession that’s already hitting certain sectors.
“I’m very sympathetic to the argument for a cut because in my opinion the manufacturing/trade side of the U.S. economy is in a recession and you can argue it’s a global recession in those two areas, so it’s really just the consumer that’s keeping us afloat here,” he said. “On the other hand, I’m of the opinion that a rate cut’s not going to help.”
On precious metals, Boockvar said that a rally in silver should be expected.
“Silver has lagged gold, and silver will catch up to gold, so I’m expecting higher prices,” he said.
