A quarter-point Federal Reserve interest rate cut in July is almost a done deal,...
- A quarter-point Federal Reserve interest rate cut in July is almost a done deal, according to economists in a Reuters poll, who expect another later in the year amid rising economic risks from the ongoing U.S.-China trade war.
Over 95% of 111 economists now predict a 25 basis point cut at the July 30-31 meeting. Only two economists polled expected a 50 basis point reduction and a further two said the Fed would hold steady. Fed rate expectations have taken a U-turn this year, going to a holding pattern earlier in the year from a steady tightening path expected beforehand to a series of cuts. Indeed, just a month ago, the U.S. central bank was still forecast to keep policy on hold for now and ease next year.
The U.S. economy likely lost momentum last quarter and is now forecast to have expanded at an annualized pace of 1.8% in the April-June period, down from 3.1% reported for the first quarter, according to the poll. Growth is expected to hover around that rate in each quarter through to end-2020. Beyond this year, the U.S. central bank is forecast to keep policy on hold until 2021, the poll showed.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
European markets seen slightly higher amid expectations ECB could cut rates before FedMarket focus is largely attuned to global central banks, amid expectations the ECB and the Federal Reserve could soon cut interest rates.
Leer más »
How lower interest rates affects markets and the US economyCNBC's steveliesman breaks down how a Fed rate cut might affect the markets and the economy.
Leer más »
Carmakers drive Europe higher, Johnson batters sterlingA wave of central bank easing and positive soundings from the earnings season bu...
Leer más »
The Fed can’t stop a market meltdown, warns forecaster who called the 2008 housing bust'If we are on a recessionary course, either by the level of debt or the level of overconfidence in the economy, the Fed may not be able to prevent it even with multiple rate cuts,” this forecaster says
Leer más »
Trump’s Fed pick Judy Shelton criticized 'ultralow' interest rates after the financial crisis. Now she wants a cut deeper than what Wall Street forecasts.Shelton argued in 2016 that lower interest rates following the financial crisis worked to the advantage of investors and corporations.
Leer más »
The Fed is leading a global push to lower rates, and Europe is getting ready to follow suitWith global growth slowing, the world's central banks are in a race to cut interest rates to boost their economies, and on Thursday the European Central Bank is expected to weigh lowering its already negative interest rate.
Leer más »