Fed Rate Cut expectations Surge After Weak Employment Data
On Wednesday of last week, following the Federal ReserveS monetary policy meeting, the market anticipated the US Central Bank was tempering expectations for interest rate cuts. However,just two days later,everything shifted with the release of surprisingly weak employment data. Investors quickly reassessed, and the expectation has grown for the Fed to cut rates twice this year, with another three cuts anticipated before July 2026. Recent statements from Federal Open Market Committee members Mary Daly and neel Kashkari support the possibility of an early rate cut, aligning with Michelle Bowman and Christopher Waller – the two members who voted for lowering the price of money last week, against the opinion of Jerome Powell.
The turnaround in expectations for rate cuts by the Federal Reserve has been rapid. after initially refusing to lower rates and convincing markets that this would be the scenario for the coming months,the cooling of employment in the United States prompted investors to reconsider.
This shift isn’t limited to investors. ING Bank,previously anticipating a limited number of cuts from the Fed,has revised its outlook.”How quickly things change. Here are the reasons that explain why we have changed our minds about what the Fed is going to do. The employment data last Friday was an alarm of alarms,” explains James Knightly, ING’s international chief economist.
The primary driver isn’t solely the decline in employment numbers, but the type of jobs being created – fragile, low-paying positions. “The mediocre July creation of jobs, of just 73,000 positions, is one thing, but the downward revision of a quarter of a million in the payrolls in just two months suggests a clear loss of momentum, and that the labor market is not, from far, as solid as we believed,” Knightly explains.
Furthermore, the expert highlights that “it is even worse if one takes into account that 89% of the jobs created in the last 31 months, since January 2023, has arrived by private education and health services, government and leisure and hospice sectors, which are worse paid, are less safe and have a much mFacebook
The First Granola Cut-Out and the Surprise Arrival of new Pigeons
The aroma of toasted oats and honey filled the air as Madrid residents celebrated the inauguration of the city’s first “granola cut-out” – a dedicated space for birds to enjoy a nutritious snack. Located in the Retiro Park,this initiative aims to provide a healthy alternative to the usual breadcrumbs and processed foods often offered by well-meaning park visitors.
The project, spearheaded by the Madrid City Council in collaboration with ornithological associations, seeks to improve the health and well-being of the park’s pigeon population. “Pigeons,like any other animal,need a balanced diet,” explains Elena Sanz,a biologist involved in the project.”Bread offers little nutritional value and can even lead to health problems. Granola, with its mix of grains, seeds, and dried fruits, provides essential vitamins and minerals.”
The cut-out itself is a charming wooden structure, designed to prevent larger birds from monopolizing the food and ensuring that pigeons have easy access. it’s already proving popular, with pigeons flocking to the area shortly after its opening.Though, the inauguration wasn’t the only surprise of the day. Alongside the expected gathering of resident pigeons,a new flock – identified as Columba livia domestica but with distinct plumage variations – arrived seemingly out of nowhere. Ornithologists are currently studying the newcomers,speculating they may have migrated from a different region or even been released pets.
“It’s an unexpected but welcome advancement,” says Sanz. “It highlights the park’s role as a haven for avian life and provides a unique prospect to study pigeon populations in the city.”
The granola cut-out is just the first step in a larger plan to improve the lives of Madrid’s urban birds. The City council is considering installing similar structures in other parks and promoting responsible bird feeding practices among citizens. For now, though, the focus remains on ensuring a steady supply of granola and observing the fascinating interactions between the resident and newly arrived pigeons.