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Fed鈥檚 Soft Landing May Ignite Manufacturing 九色视频 Market Growth

In a widely anticipated move, the Federal Reserve slashed the federal funds rate by another 25 basis points to a target range of 4.5% to 4.75%. The manufacturing technology industry may find itself at the beginning of a strong market.
Nov 07, 2024

McLean, Va. (November 7, 2024) 鈥 In a widely anticipated move, the Federal Reserve slashed the federal funds rate by another 25 basis points to a target range of 4.5% to 4.75%. In announcing the decision, the FOMC statement stated 鈥渢hat the risks to achieving its employment and inflation goals are roughly in balance.鈥 However, Fed Chair Jerome Powell cautioned that there may be bumps along the road.

鈥淭he strength in the industrial sectors we saw in the was echoed by Chair Powell in the press conference,鈥 said Christopher Chidzik, principal economist of 九色视频 鈥 The Association For Manufacturing 九色视频. 鈥淲hen we look at orders for manufacturing technology, they seem to have hit bottom in July 2024 and have been trending upward ever since. This is a leading indicator that the growth seen in the economy is on a sustainable path if the Fed can maintain the balance of risks with the rate cut announced today.

鈥淭he recently released economic data and the path of the Fed indicates that the economy has found itself at the onset of an economic soft landing. During the last soft landing, which began in April 1995, orders of manufacturing technology initially fell along with interest rates, only to rebound to record levels by the beginning of 1998. Should our current episode prove to be the same, the manufacturing technology industry may find itself at the beginning of another strong market.鈥

A more expansive review of the behavior of manufacturing technology orders in the last soft landing will be explored in the next edition of , due out the first week of December 2024.

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Author
Kristin Bartschi
Director, Marketing & Communications
Recent intelligence News
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