Author: David Sokulsky

The US Federal Reserve’s (Fed) Federal Open Market Committee (FOMC) will hold its next meeting on 17-18th September and is widely expected to cut official interest rates by 0.25%, although there is an outside chance of a 0.50% cut. A rate cut has most likely been priced into both equity and bond markets, but the potential remains for a volatile market reaction to the meetings depending on the magnitude of the cut and the language that Fed chair Jerome Powell uses.

Last month, the US Congressional Budget Office (CBO) released “An Update to the Budget and Economic Outlook: 2024 to 2034” which contains its baseline projections of what the US federal budget and the economy will look like in the current year and over the next 10 years if laws governing taxes and spending generally remained unchanged.

Carrara is globally focused and currently sees Asia as the most attractive investment destination in the world. We also think that increased exposure to the region can offer investors portfolio diversification, exposure to the strongest economic region in the world and access to global leaders in key industries.

Debt is now driving US economic growth and without government deficits, would be in a deep recession. Metaphorically speaking, like a patient overcompensating with pain medication, the US has found themselves addicted to debt.