Fed Could Accelerate Rate Cuts to Counter Faster Economic Slowdown
• Fed could cut rates 100-125 basis points in next 9 months due to weakening job market, faster than expected • Job growth likely only 150k-200k a month recently, not 353k reported in January • Weakness in job market could become catalyst for steeper rate cuts in next few weeks • Continuing unemployment claims near recessionary levels despite low headline unemployment rate • Investor sentiment very bullish despite economic risks, S&P 500 making new highs