STORY: Market shares unease as Fed's rate cut raises inflation concerns: analyst
SHOOTING TIME: Sept. 21, 2024
DATELINE: Sept. 23, 2024
LENGTH: 00:00:37
LOCATION: ISTANBUL, Türkiye
CATEGORY: ECONOMY

SHOTLIST:
1. SOUNDBITE 1 (Turkish): MURAT TUFAN, Analyst with Turkish broadcaster Ekoturk
2. SOUNDBITE 2 (Turkish): MURAT TUFAN, Analyst with Turkish broadcaster Ekoturk

STORYLINE:

Market participants remain uneasy as the Federal Reserve cut interest rates by 50 basis points on Wednesday, amidst ongoing uncertainties in the U.S. economy, said Murat Tufan, an analyst with the EkoTurk broadcaster.

SOUNDBITE 1 (Turkish): MURAT TUFAN, Analyst with Turkish broadcaster Ekoturk
"Typically, when markets receive a more-than-expected 50-basis point cut instead of 25, it should generate positivity. However, following this rate cut, confusion arose in the markets as investors expressed distrust in the Fed. They question the true state of the economy and whether the significant decline in policy rates indicated deeper underlying concerns."

Tufan believes that the Fed's "early and aggressive" easing of monetary policy is raising concerns about potential inflationary pressures, particularly as global inflation levels remain elevated and purchasing power continues to lag behind historical norms.

SOUNDBITE 2 (Turkish): MURAT TUFAN, Analyst with Turkish broadcaster Ekoturk
"A central bank departing from its policy too early, without inflation falling below 2 percent, could certainly create inflationary pressure again. Looking at inflation levels in Türkiye, Europe, and around the world, including the Middle East, we see that they are still significantly higher than historical levels."

Xinhua News Agency correspondents reporting from Istanbul, Türkiye.
(XHTV)