Rebecca Patterson says not clear what kind of landing we have, worries that rate cuts may take time to work through the economy.
- Speaking on Bloomberg The Close, Patterson noted that economic data was mixed, with NFIB survey data better than expected and small business hiring plans remaining steady. However, she warned that elsewhere there were risks of layoffs.
- Noted that the PPI suggested the fed should start easing. However, the warned that we still do not know what kind of landing we will have.
- Noted that any fed rate cuts could take time to work through the economy. She suggested this was because housing is they primary channel that rates effect the economy, and whit many borrowers having fixed rate mortgages below 4%, it would take substantial rate cuts to entice borrowers.
- Also noted news from china is concerning, as the government is controlling bond yields and causing consumers to go into gold.
