NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Creighton University economist Ernie Goss believes the Federal Reserve can't wait much longer to reduce rates.
"We asked the bankers this time about interest rate cuts," Goss said. "On average, about over half recommended, advocated for two rate cuts from the Federal Reserve. And I think we probably will see at least two rate cuts in 2024, the first one coming on September the 18th."
The reason Goss thinks that will happen has to do with the indicators lately.
"It's not because they're that they defeated inflation, it's because the economy is weakening that fast," Goss said. "Look at the unemployment rates now to 4. That's national unemployment rate up to 4.1%. You're seeing the labor market is not nearly as bright or as solid as some of the presidential candidates are claiming, depends on which candidate we're talking about. The labor market is just not as strong as advertised."
Goss isn't sure action will be enough to stave off a recession.
"Over the last 50 years, for example, you you see a real trend at the beginning of the recession, the Fed or the economic softness, the Fed begins to reduce interest rates," Goss said "What happened is they held rates too high for too long. That's what we're seeing, the results of that.
The next Federal Open Market Committee meeting is July 30 and 31.
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