Twelve Charts This Week - 8/2/2024

AUGUST STARTS AS A DIFFICULT MONTH in both geopolitics and markets. Iran is preparing an attack on Israel which could come within days. This will undoubtedly result in further escalation with Israel possibly hitting Iran’s nuclear sites. And markets are coming to the realization that the Fed is once again behind the curve in starting to cut rates. We argued in recent weeks that the Fed should cut rates at its July meeting (which was two days ago) but it did not do so. Given the speed of events, it will feel like a long time to the next FOMC meeting on September 17-18. Depending on how things evolve in the weeks ahead, the Fed may have to consider a cut before September.