Tony Kelly, Senior Economist – International, Group Economics at National Australia Bank (NAB) believes that the US Federal Reserve (Fed) is preparing to cut the interest rates as soon as next month.
Key Quotes:
“Trade disputes continue to cast a shadow over the US economic outlook.
While recent data suggest some upside risk to our Q2 GDP forecast, business surveys point to a slowing economy.
The Fed is getting ready to cut rates; we expect two 25bp reductions in the federal funds rate, with July and September now the most likely dates.
There is considerable event risk around these projections – including the upcoming meeting between the US and Chinese Presidents.
Risks still appear slanted towards the Fed making more rather than fewer cuts.”
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