The US Federal Reserve (Fed) will cut rates by a quarter-point on July 31, according to economists in a Reuters poll, who expect another rate cut later this year amid rising external risks.
Over 95% of 111 economists now expect a 25 basis point rate cut. Only two expect the Fed to deliver an aggressive rate cut of 50 basis points while two believe the Fed would stand pat.
The market is priced in for a 25 basis point rate cut and that is a strong reason for the Fed to cut rates. The equities will likely tank if the central bank stands pat.
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