Part 2/10:
Snyder emphasized that while the Federal Reserve often dominates discussions in the United States, it's crucial to recognize the actions of central banks worldwide. For instance, he noted that the European Central Bank (ECB) initiated rate cuts in response to signs of economic weakness. Their approach began with cautious cuts but shifted to more aggressive measures as they responded to deteriorating macroeconomic conditions.
Mexico provides a remarkable example of early rate cuts, starting in March of the previous year, which reflected a surprising decline in GDP. Snyder indicated that the Mexican economy, previously seen as steady, is now facing the risk of recession, largely due to structural changes in sectors such as automotive.