Articles Tagged: rate cuts

4 articles found

If Washington Goes Dark: How a Shutdown Data Blackout Could Scramble Fed Timing, Markets and Rate‑Cut Bets

The clock is running down on Capitol Hill, and with it the flow of the economic data that underpins Federal Reserve policy. If Congress fails to fund the government, a broad shutdown would trigger a "data blackout" from key statistical agencies—potentially sidelining the monthly jobs report, consumer inflation gauges and national income data just as the Fed navigates a shifting balance of risks. Markets are already bracing: consumer confidence has slipped to a five-month low and the Job Openings and Labor Turnover Survey (JOLTS) may stand as the last labor snapshot for weeks. A blackout would not just inconvenience forecasters. It would complicate the Fed’s data‑dependent reaction function ahead of its October and December meetings, force investors to lean harder on private proxies, and likely widen uncertainty premiums across rates and risk assets. Below, we map what turns off and what stays on, why it matters for the Fed, how markets may reprice cuts in a fog of missing data, and the practical playbook investors can use if official statistics go dark.

government shutdowndata blackoutFederal Reserve+17 more

Berkshire Hathaway’s Sept. 25 Earnings — What Buffett’s Q3 moves mean for investors

With stocks near record highs, the Treasury curve steepening, and the Federal Reserve pivoting toward rate cuts, Berkshire Hathaway’s late‑September earnings update arrives at a pivotal moment for capital allocators. The read‑through from Warren Buffett’s Q3 moves will extend far beyond Omaha: buyback cadence, insurance underwriting discipline, and portfolio reshaping will all signal how one of the market’s most seasoned investors is navigating a richly valued regime. Three forces frame the quarter. First, equity prices have climbed as markets priced in monetary easing; even the Fed chair has described equity valuations as fairly highly valued. Second, yields have stepped down across the curve, improving fixed‑income marks and compressing cash yields. Third, energy strategy is in flux, with Occidental Petroleum evaluating a major portfolio decision that could reshape Berkshire’s exposure to a key cyclical sector. This article outlines what to watch in Berkshire’s Q3 print, why the Occidental pivot matters, how to interpret moves through the Buffett’s Alpha framework, and practical ways investors can adjust their playbooks around the print.

Berkshire HathawayWarren BuffettQ3 earnings+17 more

After Jackson Hole: What Powell’s Rate‑Cut Signal Means for Bonds, Yields and Investor Playbooks

Federal Reserve Chair Jerome Powell used Jackson Hole to underscore a data‑contingent shift: if labor‑market risks continue to build and tariff‑related price effects prove to be a one‑time level shift rather than persistent inflation, policy easing is on the table. His comments that “the shifting balance of risks may warrant adjusting our policy stance” and that policy is “not on a preset course” re‑anchored the front end of the Treasury curve and boosted risk appetite, according to BBC and NPR reporting. Equities rallied into the close of his speech, with volatility easing and cyclicals firming alongside mega‑cap tech—consistent with a lower expected discount‑rate path. Market pricing corroborates the pivot. The effective fed funds rate is 4.33% for July (FRED), while the 2‑year Treasury is 3.68% and the 10‑year is 4.26% as of Aug 22 (U.S. Treasury). The 10s–2s spread has re‑steepened to roughly +58 bps and has held positive through mid‑to‑late August, per FMP’s 10y–2y spread series and Treasury yields. Over the last 30 trading days, major benchmarks advanced—SPY +3.3%, QQQ +2.8%, Dow +2.6%, and small‑caps (IWM) +5.2%—while TLT rose ~1.7% and GLD gained ~0.8% (Yahoo Finance). The VIX fell from ~17 to ~14, signaling easier financial conditions (Yahoo Finance). This piece examines the curve mechanics behind Powell’s signal, policy implications, cross‑asset impacts, and portfolio positioning for a data‑dependent glide path.

Federal ReserveJerome PowellJackson Hole+15 more

Federal Reserve's Delicate Balance: Navigating Interest Rate Decisions Amidst Political and Economic Pressures

In a climate of economic uncertainty, the Federal Reserve faces mounting pressure to cut interest rates, a move that has captured the attention of global markets and political leaders alike. As of August 5, 2025, the Federal Open Market Committee (FOMC) has maintained the federal funds rate at 4.33%, according to Federal Reserve Economic Data (FRED). This decision comes amidst a backdrop of lackluster employment growth and persistent calls from President Trump for a more aggressive monetary policy. While some market analysts, including those from Goldman Sachs, anticipate a series of rate cuts, the FOMC remains cautious, weighing the implications of such moves on both domestic and international fronts. This article delves into the complex dynamics at play, examining the latest data and divergent perspectives that shape the Fed's policy decisions.

Federal Reserveinterest rateseconomic indicators+7 more