Stock Securities on Slowing Economy
June 5, 2024
Central banks around the world are leaning towards cutting their benchmark rates owing to indications the world’s economy is slowing. We remain concerned the U.S. Federal Reserve may wait too long to begin its rate cutting efforts, in part because approximately 80% of the funds authorized in four major pieces of legislation from the American Rescue Plan Act to the Bipartisan Infrastructure bill, the CHIPS and Science Act and the Inflation Reduction Act have yet to be spent. The release of such a large amount of government funds in excess of $1.0 trillion into the economy will constitute substantial added stimulus. As a result, the Fed will need to keep rates at the 5.5% level likely into mid-2025 in our view.
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About Stock Securities LLC
Stock Securities LLC is a FINRA, SEC and SIPC registered broker-dealer specializing in corporate strategy, M&A transaction advisory and private placements. Founded in Princeton, New Jersey in 1993, Stock Securities, its predecessor and affiliated companies have initiated, arranged or otherwise participated as a principal in acquisition, private debt, merger, IPO, joint venture, private equity placement, private investment in public equity, and capital restructurings valued at more than $20.0 billion.
Please contact us or visit our website at www.stocksecurities.com for additional information. We welcome proposals to engage for mutual benefit and promise a prompt and confidential response.
