August 07, 2024 BY Elizabeth Anderson
Interest Rate Cuts May Worsen Carry Trade Unwind
Carry trading occurs when investors borrow at low interest rates and invest in assets with higher returns. Weak US economic data triggered a stock plunge, which may prompt the US Federal Reserve to cut interest rates in an attempt to stem a recession. CNBC quoted a note from TS Lombard analysts, which read: The natural…
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